Confidential in accordance with
Section 10A(2)(d)(i) of the Local Government Act as it contains commercial
information of a confidential nature that would, if disclosed prejudice the
commercial position of the person who supplied it.

ATT2 GM19/03 Office
of Local Government Circular 19-02 8 February 2019 ⇩

Executive Summary

The next Local Government ordinary election is due to be
held on 12 September 2020. NSW Councils have a number of options in how their
elections can be administered within their Local Government Area, which include:

· Entering
an election arrangement by contracting the NSWEC to administer all elections,
or

· Not
engaging the NSWEC and the elections of the Council be administered by the
General Manager, or

· Not engaging
the NSWEC and engage another electoral services provider to administer all
elections of the Council

Under section 296AA of the Local Government Act 1993 (the
Act), Council must, by no later than 18 months before the next ordinary
election of councillors, decide on how the September 2020 ordinary elections
are to be administered. However, the NSW State Government recently
approved a review by the Independent Pricing and Regulatory Tribunal (IPART) of
the costs of conducting local government elections in NSW. This review
could impact the administration of the September 2020 council elections, The
Office of Local Government (OLG) have advised that there is a proposal to
introduce legislation following the NSW State Election to amend the Act and
extend the deadline for councils to make a decision on the administration of
their elections to 1 January 2020.

This report details consideration into the best method of
administering the 2020 election, with due regard to some uncertainty created by
the IPART review.

Recommendation:

That Council, subject to the outcome of the Independent
Pricing and Regulatory Tribunal (IPART) review into the costs of conducting
local government elections in NSW, resolves:

1. Pursuant
to s. 296(2) and (3) of the Local Government Act 1993 (NSW) (“the
Act”) that an election arrangement be entered into by contract for the
Electoral Commissioner to administer all elections of the Council.

2. Pursuant
to s. 296(2) and (3) of the Act, as applied and modified by s. 18, that a
council poll arrangement be entered into by contract for the Electoral
Commissioner to administer all council polls of the Council.

3. Pursuant
to s. 296(2) and (3) of the Act, as applied and modified by s. 18, that a
constitutional referendum arrangement be entered into by contract for the
Electoral Commissioner to administer all constitutional referenda of the
Council.

Report

Description of Item:

Council
engaged the NSWEC to administer the 2016 local Government election with the
total cost of the election being $427,089. To arrive at an estimate of
the potential cost of the 2020 election run by the NSWEC, Council would need to
factor in cumulative CPI, increased staff and facility costs. To assist
Council determine the best option for administering the 2020 election, Council
participated in a joint tender process, conducted by NSW Regional Procurement,
for the Provision of Local Government Election Services. One tender
submission was received in this process, a copy of which is provided in the
Confidential Attachment to this report.

The NSWEC
had advised that it would submit an estimate during January, however this has
not occurred and initial enquiries suggests this is due to the NSW State
Government recently approved review by the IPART of the costs of conducting
local government elections in NSW. The purpose of the IPART review is to
ensure a robust methodology for determining costs is applied, in order to
minimise the financial burden on councils and ratepayers and to ensure local
government elections are conducted efficiently and cost effectively. The
Minister for Local Government has requested that IPART provide its report by 30
August 2019.

Under
section 296AA of the Act, Council must, by no later than 18 months before the
next ordinary election of councillors, decide on how the September 2020 ordinary
elections are to be administered. As the outcomes of the IPART review
could impact the administration of the September 2020 council elections, the
OLG have advised through a Circular (attached) that there is a proposal to
introduce legislation in the first parliamentary sitting period of 2019,
following the NSW State Election, to amend the Act to extend the deadline for
councils to make a decision on the administration of their elections.
This extension would be to 1 January 2020.

Issues:

Despite the
advice from the OLG in the attached circular, it cannot be guaranteed that the
proposed changes will be passed by the next elected Government, nor could the
OLG provide any proposed wording changes to the Act. Therefore, if
Council does not resolve to use the NSWEC before the legislated 18 month prior
deadline, and the legislation does not change, Council may not be able to use
the NSWEC if it were the best option for administering the election.

To address
this, it is recommended that Council resolve to use the NSWEC as its election
administrator subject to the outcome of the IPART review. This will
therefore allow Council the option to reassess its decision once the IPART
review is complete and more information is available on the best method for administering
the election.

Options:

The
following options are available:

1. Adopt
the recommendation provided to Council, enabling Council to use the NSWEC
subject to the result of the IPART Review.

2. Amend
or reject the recommendation, noting that this could affect Council’s
ability to use the NSWEC to administer the 2020 Local Government Election.

Sustainability Assessment:

• Environment

Not applicable to this report.

• Social

There are no social implications
associated with this report.

• Civic
Leadership

Running an effective election is
consistent with the MyCoffs Community Strategic Plan Strategy D.1 Our leaders
give us confidence in the future.

• Economic
– Broader Economic Implications

There are no broad economic impacts
associated with the implementation of the recommendations.

• Economic
- Delivery Program/Operational Plan Implications

The costs associated with conducting
the Local Government Elections has been detailed in Council’s Delivery
Program.

Risk Analysis:

There is a
risk that, despite the OLG’s circular stating there is a proposal to
amend the Local Government Act to extend the deadline for Councils to engage
the NSWEC to 1 January 2020, the legislation will not be passed. This could
leave Council without the option to engage the NSWEC. Whilst this risk is
considered low, it is prudent to mitigate the risk by engaging the NSWEC
subject to the result of the IPART review.

Consultation:

Council has
conducted relevant consultation with both internal and external stakeholders.

Related Policy, Precedents
and / or Statutory Requirements:

Local
Government Act, Part 6.

Implementation Date /
Priority:

Immediate.

Conclusion:

The IPART
review of the costs of conducting local government elections in NSW has created
uncertainty with election costs and possible legislation changes.
Therefore, Council does not have enough information to determine the best
method for administering the Coffs Harbour 2020 Local Government Election.
The recommendation contained in this report ensures Council still has the
option to select the NSWEC, subject to the result of the State Government
initiated IPART review.

That Council adopt the amended constitution for Prosper
Coffs Harbour Limited.

Report

Description of Item:

Prosper
Coffs Harbour Limited (Prosper Coffs) was established by Coffs Harbour City
Council, as a not-for-profit company to administer three charitable trusts
whose core objectives are to develop a secure source of funds for important
infrastructure. The funds from these Trusts will be used to finance
cultural and environmental projects across the city that contribute to and
enhance the Coffs Harbour community and its culture of diversity.

Prosper
Coffs is registered as a company limited by guarantee and operates as a legal
entity separate from Coffs Harbour City Council, with Council being its sole
member. A company limited by guarantee:

· is a common
company structure used for not-for-profit and charitable organisations in
Australia.

· is a type of
public company registered under the Corporations Act 2001 (Corporations Act).

· formed on the
principle that the liability of members is limited to the amount they agree to
contribute if the company is wound up. This amount is typically nominal and set
out in the company's constitution.

· must comply with
the applicable provisions of the Corporations Act.

· will usually have
a constitution that sets out specific rules governing the internal affairs of
the company.

Prosper
Coffs is governed by a constitution. The original constitution was
recently reviewed by Prolegis Lawyers, specialists in charity law, who
recommended it be amended so it is reflective of Prosper Coffs being a sole
member company. In order for the constitution to be amended, the member
(Coffs Harbour City Council) must adopt the changes by passing a special
resolution as required by Corporations Act 2001 S136 (2).

Issues:

The
constitution amendments were to modernise the constitution. In addition,
the amendments now state the elected Mayor is the member representative.
There was some ambiguity regarding this in the earlier constitution.

It is
important to note the positions on the board are not remunerated.

2. Reject
the recommendation, in which case Prosper Coffs will be governed by its
existing constitution. This is considered not ideal as the member’s
representative ambiguity and other minor out-dated wordings will remain.

Sustainability Assessment:

• Environment

There are no environmental impacts
as a result of this report.

• Social

There are no social impacts as a
result of this report.

• Civic
Leadership

Prosper Coffs is a separate entity
to Council, however the subject of this report is aligned to the MyCoffs
themes:

D1 Our leaders give us
confidence in the future

C2 A natural environment
sustained for the future

A1 A vibrant and inclusive place

• Economic
– Broader Economic Implications

There are no broader economic implications as a result of this report.

• Economic
- Delivery Program/Operational Plan Implications

There are no Delivery Program/Operational Plan implications as a
result of this report.

Risk Analysis:

Adoption of
this report decreases the risk for Prosper Coffs Harbour Limited by removing an
ambiguity in relation to who is the member’s representative and also by
correcting some out-dated wording.

Consultation:

Consultation
has occurred with Prolegis Lawyers who drafted the amended constitution. The
amended constitution has also been endorsed by the Board of Prosper Coffs
Harbour Limited and recommended to Council for endorsement.

Related Policy, Precedents
and / or Statutory Requirements:

There is no
related policy/precedent or statutory requirements associated with this report.

Implementation Date /
Priority:

The amended
constitution will take effect immediately upon Council’s resolution.

Conclusion:

An amended
constitution for Prosper Coffs Harbour Limited is presented to Council, the
sole member, for consideration and endorsement.

Council is a
member of Australian Coastal Council’s Association Inc.; however, Council
has not actively participated in the Association’s activities over recent
years. Council can access relevant advice and support on coastal
management matters from the NSW Office of Environment and Heritage (OEH) and
advocate for the community on coastal issues through its other Local Government
sector memberships. On that basis, it is considered appropriate to review
Council’s ongoing membership of the Association.

Recommendation:

That Council discontinues its membership of Australian
Coastal Councils Association Inc. from 2018-19.

Report

Description of Item:

The
Australian Coastal Councils Association Inc. was initially established in 2005
as the National Sea Change Taskforce, which focused on the challenge of rapid
growth in coastal areas. In 2015 the name of the organisation was changed
to the Australian Coastal Councils Association Inc., to reflect its role in
addressing a broader range of coastal issues.

The objectives of the
Association are:

· To
support and advance the interests of coastal councils and their constituencies;

· To
provide national leadership in addressing the impact of the sea change
phenomenon;

· To
work collaboratively with local State and Federal Governments to develop a
coordinated approach to managing population and tourism growth in coastal
areas;

· To
assist coastal councils to increase their capacity to respond to coastal issues
including projected climate change impacts and adaptation.

The
association has approximately 45 financial members nationwide and a budget of
approximately $250,000 per annum, mainly funded by membership fees.
Council’s annual membership fee for 2018-19, based on population, is
$3,497.12, excluding GST.

Issues:

Council has been a member of the Association for a number of years;
however, in recent years Council has not actively participated in the
Association’s activities; such as:

· Nominating
a Councillor as a representative on the Association’s Steering Committee;

· Attending
and/or voting at the Annual General Meeting (AGM); or

· Attending
the annual conference.

Council
receives a periodic newsletter from the Association and access to research
publications undertaken from time to time. However, these publications
are also available free of charge from the association’s website https://coastalcouncils.org.au/.
A summary of the Associations’ annual activities can be found in the
AGM’s minutes (2018 Minutes - Attachment 1).

In relation
to coastal matters, Council receives support from the NSW Office of Environment
and Heritage (OEH). Further, Council’s focus over the next few
years will be on updating Council’s Coastal Management Programs in line
with NSW legislative requirements, for which OEH is best placed to assist.

Also,
Council is a member of a number of Local Government sector organisations who
provide forums for advocacy on a broad range of community issues.

Therefore,
it is considered appropriate for Council to review its ongoing commitment to
the Association and the value membership offers.

Options:

Council has
two options to consider, being:

1. Continue
to renew its annual membership of Australian Coastal Council’s
Association Inc.; or

Membership of the Australian Coastal
Councils Association Inc. provides a mechanism for advocacy and capacity
building on environmental issues such as growth pressures, climate change
impacts and adaption. However, Council’s broader Local Government
sector memberships also provide forums to advance such issues.

• Social

Membership of the Australian Coastal
Councils Association Inc. provides a mechanism for advocacy on the management
of population and tourism growth through sea change migration to the
coast. However, Council’s broader Local Government sector
memberships also provide forums to advance such issues.

• Civic
Leadership

Membership of Local Government
sector associations provides a mechanism for advocacy on key issues for the
Coffs Harbour community.

• Economic
– Broader Economic Implications

There are no direct broader economic
implications identified in relation to this matter.

• Economic
- Delivery Program/Operational Plan Implications

Council’s annual membership
fee for 2018-19, based on population, is $3,497.12, excluding GST and is
included in Council’s Operational Plan.

Risk Analysis:

Council is a
member of a number of other Local Government sector associations such as:

· Australian
Local Government Association (ALGA);

· Local
Government NSW (LGNSW);

· Regional
Capitals Australia (RCA);

· Regional
Cities NSW;

· Country
Mayors Association of NSW; and

· Mid-North
Coast Regional Organisation of Councils (MIDROC).

These
memberships provide Council with a number of avenues to pursue key issues for
Coffs Harbour City Council on a sector-wide basis.

Consultation:

Internal
consultation suggests that membership does not offer effective value at an
officer level. However, the Association also operates at the political
level and may be considered by Councillors worthy of ongoing support.

Related Policy, Precedents
and / or Statutory Requirements:

Council’s
membership of any particular association is a matter for Council’s
consideration and determination.

Implementation Date /
Priority:

Council’s
decision will be implemented immediately.

Conclusion:

Council’s
ongoing membership of Australian Coastal Councils Association Inc. is
considered appropriate for review, given Council has not actively participated
in the Association’s activities in recent years and there are other
avenues available for support and advocacy on coastal issues.

ATT2 GM19/06 Guideline
for Conditions of Tenure for Community Organisations ⇩

ATT3 GM19/06 Guideline
for Assessment of Rental for Community Tenants ⇩

ATT4 GM19/06 CONFIDENTIAL
Report on Submissions - Public Exhibition of Draft Leasing and Licensing
Policy for Community Organisations

Confidential in accordance
with Section 10A(2)(a) of the Local Government Act as it contains personnel
matters concerning particular individuals (other than Councillors).

Executive Summary

The Council Property Strategy 2018-2021, adopted in March 2018, identified
areas where improvement work was required on the leasing or licencing of
property to community users. This work has now been undertaken and has
resulted in the provision of a Leasing and Licensing Policy for Community
Organisations (Attachment 1), a Guideline for Assessment of Rental for
Community Tenants (Attachment 2) and a Guideline for Conditions of Tenure for
Community Organisations (Attachment 3).

Under the Policy and Guidelines, rental assessments are recommended to be
calculated taking into account market valuation, type of entity and
tenant’s capacity to pay. The impact of this assessment will also
allow for the effective measurement of Council’s contribution to
community providers through the provision of subsidised rental.

The Policy and Guidelines, for the first time, provide a transparent and
equitable process to be applied across all of the Coffs Harbour community who
wish to utilise Council controlled.

As resolved by Council 11 October 2018 – Item BS18/57, the draft
Policy and Guidelines have been through a public exhibition period.
Several suggestions were lodged and considered and the documents updated as
required. Adoption of the Policy is now sought.

Recommendation:

That Council:

1. Adopt
the Leasing and Licensing Policy for Community Organisations.

2. Note
the Guideline for Assessment of Rental for Community Tenants and the Guideline
for Conditions of Tenure for Community Organisations.

Report

Description of Item:

The objective of the Leasing and Licensing
Policy for Community Organisations and associated Guidelines is to provide a
structured, transparent framework for the leasing and licensing of Council
owned/controlled properties to community organisations.

Council maintains a significant portfolio of
leases and licences to various community organisations. This Policy seeks
to establish a formalised process for the assessment of the contribution of
such groups relative to Council's Community Strategic Plan.

The Policy further seeks to establish a
formalised system to quantify Council's contribution to such groups through the
provision of subsidised rents. This Policy establishes the basis for
joint responsibility for the long term sustainability of community facilities,
whilst acknowledging the valuable contribution of community groups, and
provides a structured approach to assistance through the leasing arrangements.

The Guidelines
support the Policy to ensure that all such tenures are transparent and
equitable.

The
Guideline for Assessment of Rental for Community Tenants outlines the process
for the determination of rent applicable to community organisations occupying
Council owned/controlled properties.

The purpose
of the Guidelines for Conditions of Tenure for Community Organisations is to
provide a structured, transparent framework for the leasing and licensing of
Council owned/controlled properties.

As resolved
by Council 11 October 2018, the documents have been placed on public
exhibition. Although resolution stipulated a period of 28 days, a longer
period of 42 days from 5 November 2018 to 17 December 2018 was exercised due to
the nature of content and Council’s public engagement policy.
Additionally, all existing community tenants of Council facilities were written
to advising them of the draft documents on public exhibition.

The
confidential attachment includes the tabled responses from the public through Council’s
Have Your Say website.

Issues:

Four (4) submissions were received during the public
exhibition period. From these submissions, several comments/queries were
reviewed for consideration and have been assessed as follows:

Further questions relating to the individual agreement with
the enquiry are addressed as follows:

· How do I
know when our rent is scheduled for a market review?

Market
review arrangements are stipulated in the lease.

· Will we be
disadvantaged in comparison to other organisations who have not maintained
their building when an independent valuer determines the market value of the
building for Council to prices the rent?

No,
as there is provision within the pricing matrix to acknowledge organisation
contribution to the premises.

· How is
“the total annual cost of maintaining the facility at agreed
levels” determined?

On
a case by case basis during negotiation of agreement stage.

· Can you
please explain what “contribution made by the community group to the
capital cost or level of intended investment in the capital
infrastructure” means?

It
is a recognition of the contribution made to the physical amenity of the
property by the Community Organisation which can result in an effective rebate
or discount to rent.

· Guideline
for Conditions of Tenure: Section 2, dot point 1 – Does this mean
details of the arrangements for individual properties will be made public?

This
may be a future consideration however does not form part of the current
process.

· Will there
be some form of proforma developed to address 3.1?

This
will be governed by Council’s Procurement Policy.

· In relation
to 3.1, what about existing & current leases/licences?

Existing
agreements will continue to be honoured as per the individual agreement.

· 3.4.1, will
this be as a total or as individual parties?

Both.
Each will be reported enabling a total to be determined.

· 3.6, Does
this include additional grant funds?

Yes,
it may – this will be assessed on a case-by-case basis.

· 3.20, can
these be divided into what Council as owner would routinely be responsible for
and the lessee or tenant?

This
is done under arrangement at the outset by negotiation and will form part of
the agreement. It will have regard to type of premises and amenity of any
building or structure.

· What is
meant by ‘Rental Calculation AxBxCxD’?

The
results from each of the matrix sections will be multiplied together to
determine the rebated rental amount.

· What does
‘Minimum Rent equal to application fee for use of Council Land Per Annum
as per fees and charges’ have to do with the rental calculation?

This
refers to those groups such as Clubs who have a partial, occasional use of a
public space and in which case the matrix will not apply.

Options:

1. Adopt
the recommendation and resulting in adoption of the Policy and noting of the
associated Guidelines.

2. Reject
the recommendation and continue the current practice where inconsistent
approaches are sometimes applied to leasing and licencing arrangements.

Sustainability Assessment:

• Environment

The new Policy and Guidelines do not
have any known or perceived environmental impacts.

• Social

The new Policy and Guidelines
provides a formalised system to quantify Council's contribution to community
groups through the provision of subsidised rents and establishes a basis for
joint responsibility for the long term sustainability of community facilities,
whilst acknowledging the valuable contribution of community groups.

• Civic
Leadership

The new Policy and Guidelines
significantly improve consistency and transparency in leasing and licencing of
facilities to community organisations. This demonstrates Council
leadership through good governance and also facilitates deliver of the
following MyCoffs Community Strategic Plan objectives through tenures to
community groups.

A1.4 We
enrich cultural life through art, learning and cultural endeavour.

A2.1 We
support our community to lead healthy active lives.

D2.1 We
effectively manage the planning and provision of regional public services and
infrastructure.

• Economic
– Broader Economic Implications

Council acknowledges the valuable
contribution made by the various community groups operating in the Local
Government Area by, amongst other things, subsidising accommodation costs for
the such groups. The rent subsidy equates to the difference between the
market rent of the property and the rent payable by the tenant.

• Economic
- Delivery Program/Operational Plan Implications

There are no immediate impacts to
the Delivery Program or Operational Plan.

Risk Analysis:

The Policy and Guidelines will see a change in current
rental being paid for some community organisation and this may be an increase
or a decrease depending on their circumstances. It is therefore important
for the communication to community organisations to clearly articulate the
purpose of the draft documents to enable Council’s intentions to be fully
understood. Public exhibition of the draft Policy and Guidelines and
consideration of submissions has reduced the risk of community dissatisfaction
by ensuring adequate public consultation.

Consultation:

The Policy
and Guidelines were placed on public exhibition for 42 days from 5 November
2018 to 17 December 2018. Additionally, all existing community tenants of
Council facilities were written to advising them of the draft documents on
public exhibition.

Related Policy, Precedents
and / or Statutory Requirements:

· Local
Government Act 1993

· Local
Government (General) Regulation 2005

· Coffs
Harbour Local Environment Plan 2013

· Crown Lands
Management Act 2016

· The Crown
Land Management Regulation 2018

· Conveyancing
Act 1919

· Real
Property Act 1900

· Retail
Leases Act 1994

· Residential
Tenancies Act 2010

· Work Health
and Safety Act 2011

· Work Health and
Safety Regulation 2011

· Child
Protection (Offenders Prohibition Orders) Act 2004

· CHCC
Property Strategy 2018-2021

· Anti-Discrimination
Act 1997

· Community
Land Development Act 1989

Implementation Date /
Priority:

The Policy
and Guidelines will be implemented immediately upon Council’s resolution.

Conclusion:

This report
provides Council with an overview of the result of public exhibition of the
draft Policy and Guidelines for leasing and licencing to community
organisations. The report seeks approval for the Policy to now be
adopted.

GM19/07 2019
National General Assembly of Local Government - Call for Motions

This report
provides notice that the Australian Local Government Association (ALGA) has
advised that conference motions to be considered at the next National General
Assembly (NGA) of Local Government are to be matters of policy significance to
local government nationally and are to be submitted to ALGA by Friday 29 March
2019.

Recommendation:

That:

1. Councillors
submit any motions in line with the Australian Local Government Association
Discussion Paper to the General Manager by Thursday 7 March 2019.

2. A
separate report of any motions received, be submitted for the Council Meeting
of Thursday 28 March 2019.

Report

Description of Item:

The 2019 NGA
of Local Government will be held at the National Convention Centre in Canberra
on the 16-19 June 2019.

As the major
event on the annual local government events calendar, the NGA typically
attracts more than 800 mayors, councillors and senior officers from Councils
across Australia. The NGA is an opportunity for Council to contribute to
the development of national local government policy and receive updates on the
top policy issues facing local government nationally.

The ALGA
Board is calling for motions for the 2019 NGA under this year’s theme
“Future Focused”.

To be
eligible for inclusion in the NGA Business Papers, motions must meet the
following criteria:

1. Be
relevant to the work of local government nationally;

2. Be
consistent with the theme of the NGA;

3. Complement
or build on the policy objectives of state and territory local government
associations;

4. Be
submitted by a council which is a financial member of their state or territory
local government association;

5. Propose
a clear action and outcome; and

6. Not
ne advanced on behalf of external third parties that may seek to use the NGA to
apply pressure to Board members or to gain national political exposure for
positions that are not directly relevant to the work of, or in the national
interests of, local government.

To assist
councils in preparing motions, a Discussion Paper has been prepared and is
provided as an attachment to this report.

The ALGA
seeks all conference motions to be submitted no later than Friday 29 March
2019.

Issues:

Council
representatives have in the past attended the ALGA NGA Conference.

As the
closing date for conference motions is Friday 29 March 2019, Councillors should
give consideration to any matter they may wish to raise with a view to
submitting any proposed NGA motions as a Notice of Motion for Council’s
consideration at its meeting of 28 March 2019. This means that any
Notices of Motion in respect of this matter will need to be with the General
Manager by close of business on Thursday 7 March 2019.

Options:

It is
proposed that the options will be considered within the report provided for any
notices of motion that are lodged.

Sustainability Assessment:

• Environment

Issues dealing with the environment
are a regular feature on the agenda of the conference. The annual conference
debates change to policy and strategy.

• Social

Social issues are also debated and
policy and strategy adopted. Councillors attending the NGA are able to
network socially with their colleagues from across the nation and interchange
ideas and best practice.

• Civic
Leadership

The submission of motions to the
ALGA NGA is a way in which Council is able to pursue civic leadership on behalf
of its community.

• Economic
– Broader Economic Implications

There are no economic implications
associated with this report.

• Economic
- Delivery Program/Operational Plan Implications

There are no Delivery Program or Operational
Plan implications.

Risk Analysis:

A risk
analysis may need to be applied to the context of any motions submitted for the
consideration of Council.

Consultation:

Council has
submitted motions to previous ALGA National General Assembly’s.

Related Policy, Precedents
and / or Statutory Requirements:

Council
considers the need for conference motions each year.

Implementation Date /
Priority:

Any proposed
motions for the 2019 ALGA NGA will need to be submitted to the General Manager
by close of business Thursday 7 March 2019, to enable the timeframes set by
ALGA to be achieved.

Conclusion:

There is no
compulsion on Council or Councillors to submit motions to the ALGA NGA.
However, should Councillors wish to pursue the submission of motions, the
timeframes set out in this report will need to be adhered to.

Council’s
Bank Balances and Investments as at 31 January 2019 totalled
$209,690,241.80. Council receives independent advice and invests surplus
funds in accordance with Council’s Investment Policy to maximise
investment income and preserve capital to assist with funding requirements for
projects listed under the My Coffs Community Strategic Plan.

Also
included in the monthly report is a summary of Council’s Socially
Responsible Investment Performance (refer Attachment 1).

Recommendation:

That Council note the bank balances and investments
totalling $209,690,241.80 (including from loans, Developer Contributions and
other avenues that form the restricted accounts and are committed for future
works) as at 31 January 2019.

Report

Description of Item:

A copy of
the state of Bank Balances and Investments as at 31 January 2019 is
attached. Also included is a summary of Council’s Socially Responsible
Investment Performance.

It should be
noted that Council is required to account for investments in accordance with
the Australian International Financial Reporting Standards. Term deposits
are shown at face value and all other investment balances at the end of each
month reflect market value movements which would be inclusive of accrued
interest.

Interest
when paid, say quarterly, would result in reductions in the market value of the
investments. The Investment Report reflects the above requirements and
reflects the interest earned (or accrued) on each investment, based on the
acquisition price.

Reports
written by Laminar Group Pty Ltd (Council’s investment portfolio
advisors), which examine economic and financial markets data for January 2019
are available in the Councillors’ Resource Centre.

Issues:

There are no
issues associated with the report.

Options:

As the
report is for noting only, an options analysis is not required.

Sustainability Assessment:

• Environment

There are no perceived current or
future environmental impacts from the information contained in this report.

• Social

There are no perceived current or
future social impacts from the information contained in this report.

• Civic
Leadership

Council invests surplus funds to maximise
investment income and preserve capital to assist with funding requirements for
projects listed under the My Coffs Community Strategic Plan.

• Economic
– Broader Economic Implications

Council’s investments are held
according to the requirements stated within Council’s Investment Policy
and the returns are acceptable in relation thereto. In the long term,
earnings from investments can vary due to economic conditions and financial
markets. Council constructs its investment portfolio with consideration
of current conditions and to comply with the Office of Local Government
investment policy guidelines.

• Economic
- Delivery Program/Operational Plan Implications

As at 31 January 2019, it is noted
that the total bank and investment balance was $209,690,241.80 comprising
restricted and unrestricted General, Trust, Water and Sewerage Fund cash and
investments.

Risk Analysis:

The
likelihood of risks associated with New South Wales Local Government’s
investing funds is now remote due to the conservative nature of investments
permitted under statutory requirements. The risk of capital not being
returned in relation to each individual investment Council owns is indicated in
the attachment.

The main
risks for Council’s investment portfolio are liquidity and credit risk,
both of which are being managed under the advice of Laminar Group Pty
Ltd. Liquidity risk is the risk that the Council is unable to redeem the
investment at a fair price within a timely period and thereby incurs additional
costs (or in the worst case is unable to execute its spending plans).
Credit risk is the risk of loss of principal stemming from a financial
institutions failure to repay that principal when that principal is due.
Council is compensated for assuming credit risk by way of interest payments
from the financial institutions issuing the investment security.

Credit risk
is rated by various rating agencies. Investment securities in Council’s
current portfolio are rated by either Standard and Poors or Fitch, with the
majority of the portfolio rated by Standard and Poors. Standard and Poors
credit ratings and an explanation of their ratings are as follows:

Adequate capacity to meet financial commitments, but
more subject to adverse economic conditions.

BBB-

Considered lowest investment grade by market
participants.

BB+

Considered highest speculative grade by market
participants.

BB

Less vulnerable in the near term but faces major
ongoing uncertainties to adverse business, financial and economic conditions.

B

More vulnerable to adverse business, financial and
economic conditions but currently has the capacity to meet financial commitments.

CCC

Currently vulnerable and dependent on favourable
business, financial and economic conditions to meet financial commitments.

CC

Currently highly vulnerable.

C

Currently highly vulnerable obligations and other
defined circumstances.

D

Payment default on financial commitments.

Ratings from
‘AA’ to ‘CCC’ may be modified by the addition of a plus
(+) or minus (-) sign to show relative standing within the major rating
categories.

Types of
investment securities by credit risk ranking from highest to lowest are as
follows:

· Deposits/Covered
Bonds – these share first ranking

· Senior debt
– Floating Rate Notes/Fixed Coupon Bonds.

· Subordinated debt

· Hybrids

· Preference shares

· Equity shares
(common shares).

Subordinated
debt, hybrids, preference and equity shares are not a permitted investment
under the current Ministerial Order. Term deposits of $250,000 or less
per financial institution are covered under the Commonwealth Government Deposit
Guarantee Scheme and therefore by default have the same credit rating as the
Commonwealth Government, ie AAA.

All credit
unions, building societies and mutual banks are Authorised Deposit-taking
Institutions (ADIs) and are regulated in the same way as all other Australian
banks. ADIs are regulated by the Australian Securities and Investment
Commission under the Corporations Act 2001, and by the Australian Prudential
Regulatory Authority under the Banking Act 1959.

Consultation:

Council’s
investment advisors, Laminar Group Pty Ltd have been consulted in the
preparation of this report.

Related Policy, Precedents
and / or Statutory Requirements:

Council funds have been invested in accordance with
Council’s Investment Policy (POL‑049), which was adopted on
24 August 2017.

The Office
of Local Government has developed a minimum set of budget reports to assist
Council in meeting their legislative requirements under Clause 203 of the
Regulation. This regulation requires a Council’s Responsible
Accounting Officer to submit quarterly budget review statements to the
governing body of Council. These minimum statements are contained within
the attachments to this report.

This report
summarises the proposed budget adjustments for the quarter and the impact upon
the projected budget position for the current financial year.

Recommendation:

That Council:

1. Note
the Quarterly Budget Review Statement and the following estimated budget
position as at 31 December 2018:

2018/19
Original Budget

2018/19 Revised Budget

2018/19 Projected
Budget

2018/19 Dec
YTD Actuals

‘000s

‘000s

‘000s

‘000s

Recurrent Revenue

Rates
& Annual Charges

$97,342

$97,342

$98,912

$96,979

User
Charges & Fees

$33,263

$42,584

$42,584

$22,629

Interest
& Investment Revenue

$4,251

$4,311

$4,311

$3,319

Other
Revenues

$16,676

$16,873

$15,380

$5,105

Grants &
Contributions provided for Operating Purposes

$13,383

$13,538

$14,089

$5,659

RECURRENT REVENUE

$164,915

$174,648

$175,276

$133,691

Recurrent Expenditure

Employee
Benefits & Oncosts

$48,363

$52,147

$52,233

$30,238

Borrowing
Costs

$9,723

$9,780

$9,780

$3,857

Materials
& Contracts

$107,974

$152,209

$155,920

$51,747

2018/19
Original Budget

2018/19 Revised Budget

2018/19 Projected
Budget

2018/19 Dec YTD Actuals

‘000s

‘000s

‘000s

‘000s

Depreciation
& Amortisation

$38,906

$43,042

$43,042

$20,170

Other
Expenses

$10,026

$10,879

$11,370

$5,758

Less:
Capitalised Expenses

(50,013)

(89,477)

(92,923)

(24,634)

RECURRENT EXPENDITURE

$164,979

$178,580

$179,422

$87,136

NET OPERATING (DEFICIT)
/ SURPLUS

($64)

($3,932)

($4,146)

$46,555

Capital Revenue

Capital Grants,
Subsidies, Contributions and Donations

$18,051

$34,364

$36,492

$8,000

CAPITAL REVENUE

$18,051

$34,364

$36,492

$8,000

NET SURPLUS

$17,987

$30,432

$32,346

$54,555

2. Approve
the following budget adjustments:

· $214,362 increase
in the budgeted net operating deficit;

· $2,127,724 increase
in budgeted capital revenue to be received;

· $3,446,023 increase
in the budgeted level of capital expenditure.

Report

Description of Item:

As part of
the Integrated Planning and Reporting (IP&R) Framework for local
government, the Office of Local Government has developed a minimum set of
budget reports to assist Council in meeting their legislative requirements.
These documents are collectively known as the Quarterly Budget Review Statement
(QBRS) and form part of the framework of Clause 203 of the Regulation.
This regulation requires a Council’s Responsible Accounting Officer to submit
quarterly budget review statements to the governing body of Council.
These minimum statements are contained within the attachments to this report.

The
Responsible Accounting Officer advises that the Quarterly Budget Review
Statement indicates the financial position of the Council is satisfactory,
having regard to the projected estimates of income and expenditure and the
original budgeted income and expenditure.

Following is
a list of recommended variations for the Quarter ending 31 December 2018 for
the consideration of the Council. These variations are reflected in the
projected budget as presented in the estimated budget position as at 31
December 2018 contained within the recommendation.

The end of
year financial statements excludes any internal transactions which may be
recorded within our financial system so as to truly reflect our financial
position. An example of such a transaction would be where the Council
charges itself Rates for a property it owns. For financial statement
preparation, such a transaction would be excluded from the financial
statements. Similarly, this report is created on the same basis for
consistency.

Recommended
budget variations for the quarter ended 31 December 2018 are listed in
Attachment 1. Columns are included to make it clearer how variations impact the
operating result, capital expenditure and the relevant funding sources.
The column definitions for the table are as follows:

· Operating

Adjustment to either operating
income or operating expenses, the net of which impacts the operating
result. A positive number represents a deterioration and negative number
represents an improvement in the operating result.

· Reserves
– Operating

Any adjustment to either
operating income or operating expenses that are offset by movements to or from
Council’s restricted reserves. A positive number represents an
improvement and negative number represents a deterioration in the overall cash
position.

· Capital
Expenditure

Adjustment to the level of
capital expenditure. A positive number represents an increase and
negative number represents a decrease in the level of capital expenditure.

· Capital
Grants and Contributions

Adjustment to capital grants and
contributions (capital revenue). A positive number represents a decrease
and negative number represents an increase in capital grants and contributions
to be received.

· Reserves
– Capital

Any adjustment to either capital
expenditure or capital grants and contributions that are offset by movements to
or from Council’s restricted reserves. A positive number represents
an improvement and negative number represents a deterioration in the overall
cash position.

Issues:

This report
is tabled to meet Council’s statutory requirements. These
variations will not impact council’s financial strategies.

Options:

Council’s
options in relation to this report are to:

1. Adopt
the recommendation provided to Council.

2. Amend
the recommendation provided to Council and then adopt. This may impact
upon the projected bottom line budgeted position.

3. Reject
the recommendation provided to Council. This would revert the budget back
to its original position prior to the recommendation being sought.

Sustainability Assessment:

• Environment

There are no perceived short or
long-term environmental impacts.

• Social

There are no perceived short or long
term social impacts.

• Civic
Leadership

Council strives to reach a balanced
budget position by June 30 each year in conjunction with meeting its short term
priorities.

• Economic
– Broader Economic Implications

This report assesses the current
year’s projected budget position only. Any variations approved by
Council are subsequently reflected in Council’s Delivery Program and may
affect future economic sustainability.

• Economic
– Delivery Program/Operational Plan Implications

The original adopted budget for
2018/19 provided a net surplus of $17,987,000 and an operating deficit of
$64,000 before capital revenue.The budget
adjustments recommended in this report, together with revotes previously
approved by Council, result in a projected budget net surplus of $32,346,000
and an operating deficit of $4,146,000 before capital revenue. There has
beendeterioration in the operating result of
$214,362 this quarter, with the majority of recommended changes funded by
existing Council reserves.

Risk Analysis:

Not
applicable.

Consultation:

Group Leaders and their relevant staff have reviewed their
budgets by cost centre in consultation with Finance Business Partners.
Requested variations and variations adopted by Council have been included in
the report.

Related Policy, Precedents
and / or Statutory Requirements:

Under Local
Government Regulations the Responsible Accounting Officer is required to submit
a quarterly budget review to Council.

Implementation Date /
Priority:

The approved variations will be updated in the affected
budgets prior to release for review in the following month.

Conclusion:

This report
summarises the proposed budget adjustments for the quarter and the impact upon
the projected budget position for the current financial year. The Responsible
Accounting Officer confirms the Quarterly Budget Review Statement indicates the
financial position of the Council is satisfactory, having regard to the
projected estimates of income and expenditure and the original budgeted income
and expenditure.

BS19/09 Release
of Restriction on Use of Land Related to Properties Known as 2-8 Cobia Close,
Korora

Council has
been requested by the legal representative of OpalCoffs Holdings Pty Limited to
release a restriction on the use of land it owns known as numbers 2, 4, 6 and 8
Cobia Close, Korora. The restriction prohibits development on a 10 metre
wide portion of the properties adjoining the southern boundary of 2 to 6 Cobia
Close and the southern and eastern boundary of 8 Cobia Close. The
properties are newly created residential lots developed by the above company
and are heavily restricted by the encumbrance which limits their potential for
dwelling construction. The restriction was created in 1990 and was at the
time required as a buffer to existing residential dwellings from the Opal Cove
Resort. Today plans for the extension of the resort have been abandoned
at this location and the land has been developed as a low density tradition
residential subdivision known as Korora Beach Estate. As such the
restriction affecting the 4 lots which is in favour of Council is no longer
required.

Recommendation:

That Council:

1. Agree
to release the Restriction on Use of Land that affects Lots 32 - 35 DP
1237515 known as 2, 4, 6 and 8 Cobia Close, Korora.

2. Agree
that all costs associated with this matter will be the responsibility of the
proponent.

3. Agree
to execute under seal any legal documents that maybe required to effect
release of the restriction.

Report

Description of Item:

Council has
been requested by the legal representative of OpalCoffs Holdings Pty Limited to
release a restriction on the use of land that affects numbers 2, 4, 6 and 8
Cobia Close, Korora which are owned by the company. The restriction
prohibits development on a 10 metre wide portion on each property specifically
adjoining the southern boundary of 2 to 6 Cobia Close and the southern and
eastern boundary of 8 Cobia Close. The location of the restriction is
shown by hatching on the attached plan to this report.

The
properties are newly created residential lots developed by the above company
and are heavily impacted by the existence of the restriction which limits
potential for dwelling construction.

The
properties are zoned R1 General Residential under Coffs Harbour LEP 2013 and
all are small domestic sized lots which are generally level. The
properties back onto existing and older detached residential homes that form
part of an original subdivision of the Korora locality.

The restriction
referred to in this report which is in favour of Council was created in
1990. It was required as a buffer to existing and adjoining residential
dwellings to the south of the Opal Cove Resort which at the time was proposed
to expand into this area. Today plans for the extension of the resort
have been abandoned at this location and the land has been developed as a low
density traditional residential subdivision known as Korora Beach Estate.
The location of the restriction affecting properties 2, 4, 6 and 8 Cobia Close
is highly restrictive and compromises the use of the land for its intended
purpose.

Because of
the change to the use of land at this location the legal restriction benefiting
Council is no longer required.

Issues:

There are no
major issues. The land use at this location has changed over the years
and the original purpose of the restriction is no longer current or
relevant. Council will assess the impact on adjoining residential
properties via the DA process for new applications that maybe received for the
four lots affected.

Options:

Council have
two options available:

1. Agree
to release the restriction as proposed.

2. Not
agree to the release of the restriction.

There is
little or no reason not to consent to the release of the restriction which is
supported by the land owner and the technical planning staff at Council.

Sustainability Assessment:

• Environment

The processing of this matter and
removal of the restriction will facilitate development of the land to its full
potential. Development of the properties affected will be subject to
lodgement of separate Development Applications and any environmental issues
will be considered at that time.

• Social

The release if supported will
facilitate development in closer proximity to adjoining low density residential
properties to the south and east. Any development proposed would need to
have regard to impact on adjoining properties via the Development Application
process as would be the case in all low density residentially zoned areas of
the city.

• Civic
Leadership

The processing and release of the
restriction as proposed will facilitate appropriate residential development of
the lots impacted and will be consistent with the recent subdivision of this
land and ensure practical and efficient use of the land.

• Economic
– Broader Economic Implications

There are no implications.

• Economic
- Delivery Program/Operational Plan Implications

All costs associated with the matter
are to be the responsibility of the proponent and land owner. There will
be no costs to Council.

Risk Analysis:

There is
considered little or no risk in processing the release of the restriction on
the four lots as proposed by the owners of the land.

Consultation:

Development
Assessment have advised that the restriction is no longer considered necessary
given the typical residential and future low density residential development on
lots 32-35. By restricting the building envelope, the future dwellings on
these lots are more likely to be two storeys to obtain the necessary floor
area. Removing the restriction will allow a reduced setback; however,
will provide greater options for a single story dwelling with less impacts on
the adjoining properties. Impacts of future development on the adjoining
properties will be considered and neighbours notified (if required) with each
DA for the individual lots as per the DCP. For these reasons, the release
of the restriction is supported.

Related Policy, Precedents
and / or Statutory Requirements:

The release
of the restriction affecting the properties requires a resolution of Council
pursuant to Section 377(1) (h) of the Local Government Act 1993.

Implementation Date /
Priority:

The matter
will be actioned immediately upon Council’s resolution by executing the appropriate
20ECE Form for Cancellation or Extinguishment of Easement.

Conclusion:

A request
has been made by the owner of four vacant residential lots at Korora to release
a restriction that benefits Council and prohibits any structure to be
constructed on part of these lots making them difficult to develop
appropriately. The restriction relates to a historical requirement in
1990 to buffer existing dwellings in this locality from the Opal Cove Resort
Development. The resort plans in this location have been abandoned and
this area has now been approved and constructed as a low density residential
subdivision. As such there is no need for the restriction to continue to
apply and Council should agree to release the restriction to facilitate
appropriate development of the lots.

BS19/10 Australasian
Local Government Performance Excellence Program FY2018 Report

In 2013 PwC
Australia and LG Professionals NSW worked in collaboration to create the
Australasian LG Performance Excellence Program. The program uses
PwC’s local government experience and analytics expertise to provide a
local government sector based benchmarking approach. Participants now
include 139 Councils, 65 from New South Wales, 21 from New Zealand, 23 from
South Australia, 28 from Western Australia, 1 from Queensland and 1 from the
Australian Capital Territory. Like Coffs Harbour City Council, 64% of
participants or 89 Councils have resident populations between 10,001 and
100,000, and 40% of participants or 55 Councils are classified as Regional
Councils.

Coffs
Harbour City Council joined in 2016 at the beginning of the second three year
period of the program and 2018 represents Council’s third year of
participation.

This report
presents to Council the 2017-18 Performance Excellence Report for Coffs Harbour
City Council. The results of the program will continue to inform areas of
focus for Council’s workforce planning and continuous improvement
initiatives moving forward.

Recommendation:

That Council note the report.

Report

Description of Item:

In 2013 PwC
Australia and LG Professionals NSW worked in collaboration to create the
Australasian LG Performance Excellence Program. The program uses
PwC’s local government experience and analytics expertise to provide a
local government sector based benchmarking approach. Participants now
include 139 Councils, 65 from New South Wales, 27 from New Zealand, 17 from
South Australia, 31 from Western Australia and 1 from Queensland. Like
Coffs Harbour City Council, 65% of the participants are Councils with resident
populations between 10,000 and 100,000, and 40% are classified as Regional
Councils.

The program
represents a contemporary industry-led system of Council performance
measurement that has been delivering results for participating councils for
over five years. The program measures and provides Councils strategic and
operational insights into; corporate leadership, workforce management, finance
management, operations management, risk management, asset management and service
delivery. Using this information, each Council receives an annual
Performance Excellence Report (Attachment 1) along with direct access to the
additional Comparative Analysis Tool enabling Councils to drill into the
program’s data themselves. Uniquely, through the Comparative
Analysis Tool participating Councils can compare and benchmark their
performance against the overall sample, pre identified sub-segments of the
sample, new bespoke segments (as created by the Council themselves), as well as
all other individual identified participating councils in the sample.

Coffs
Harbour City Council joined in 2016 at the beginning of the second three year
period of the program and 2018 represents Council’s third year of
participation.

The results
of the program will continue to inform areas of focus for Council’s
workforce planning and continuous improvement initiatives moving forward.

Issues:

Highlights
from the attached 2017-18 Performance Excellence Report for Coffs Harbour City
Council are outlined below.

The report
highlights some very good achievements by Council compared to the survey
population, which include:

1. Lost
time injury (LTI) days per 100 employees of 17 compared to the NSW survey
population result of 88 days. This reflects the continued focus and hard
work of the Work, Health and Safety Team and the participation of the workforce
in safety initiatives across Council.

2. FTE
per 1,000 residents and remuneration as a percentage of operating expenses both
remain lower than the NSW survey population.

3. Median
sick leave is 4.2 days compared to the survey population of 5.9 days.
This is most likely due to improved management and the introduction of the sick
leave incentive payment to staff.

4. Although
leave levels remain at the high end, particularly long service leave, the
levels are declining through diligent management.

5. Staff
turnover rate measures are all below the NSW survey population levels. It
is particularly pleasing that turnover in the first year of employment is an
extremely low 4%.

Several
items for further attention have also been identified from the report. In each
case actions are listed to ensure the issues are addressed as necessary.

It should be
noted that comparisons made with other Councils always need to be cognisant and
understanding of differences that exist in each Council’s definitions and
methods of service delivery.

1. Although
overtime spend has stabilised and the gap between Council and the NSW Council
median spend has narrowed, the gap is still significant. A whole of
organisation analysis has been completed since last year and is being worked
through with senior leadership to ensure that our resourcing mix is optimised.

· Ongoing assistance from
Organisational Development to optimise resource mix.

· Ongoing overtime
reporting for monitoring purposes.

2. The
ageing of the workforce is a common issue for the Local Government sector.
During this year Organisational Development will complete a Talent Management
Framework in accordance with the Workforce Plan Management Plan. This
will enable the rollout of formal and targeted talent identification, workforce
development and succession planning strategies and actions during 2018-19 and
subsequent years.

Actions:

· Professional development
conversions now embedded in the Performance Excellence process.

· Complete Talent
Management Framework.

· Commence the rollout of
Talent Management Framework strategies and actions in
2018-19.

3. Council’s
gender diversity is lower than the NSW population, although it needs to be
noted that water and sewerage skews the result and that this issue is also more
of a challenge for non-metro Councils. Gender diversity is one aspect of
diversity and talent management which Council is actively addressing through
the implementation of its Gender Equality Strategies and Action Plan, which has
been the subject of internal workshops and Councillor briefings.

4. Labour
hire use remains above the median; however, from analysis undertaken to date
this relates heavily to the resourcing mix Council uses for seasonal work and
due to the inclusion in reporting of activities, such as Holiday Parks.
The use of labour hire will continue to be monitored.

Actions:

· Ongoing labour hire
reporting for monitoring purposes.

Options:

As the
report is provided only for noting no options analysis is provided.

Sustainability Assessment:

• Environment

There are no perceived current or
future environmental impacts.

• Social

There are no perceived current or
future social impacts.

• Civic
Leadership

Participating in relevant
benchmarking programs demonstrates Council’s openness and transparency to
self-evaluation, accountability and comparison. The results of the
program will be used to inform areas of focus for Council’s workforce
planning and continuous improvement initiatives with the aim to deliver service
improvement and/or efficiency for Council and the community.

• Economic
– Broader Economic Implications

There are no direct broader economic
impacts from this report.

• Economic
- Delivery Program/Operational Plan Implications

Council’s participation in the
program is funded through the Delivery Program / Operational Plan and costs
$15,250 per annum for each of the three years 2015-16 to 2017-18.

Risk Analysis:

Publishing
the 2017-18 Performance Excellence Report for Coffs Harbour City Council
provides further transparency on Council’s operations and
performance. This information may be misused out of context and therefore
may present some reputational risk for Council. However; being open and
honest with the community enhances Council’s reputation.

Consultation:

Consultation
has occurred with the broader leadership of Council.

Related Policy, Precedents
and / or Statutory Requirements:

The
following information and disclaimer is required by PwC to be published when
the Performance Excellence Report is shared with third parties:

Sharing
Results with Third Parties

This report
has been provided to each participating council so that a participating council
can understand how it compares to the aggregated findings and for no other
purpose. The report is intended for the participating council recipient
only.

This report,
including all data and comparative insights contained in it, is confidential to
PwC and the participating council. Except as set out below, the report
should not be disclosed in whole or in part to another person unless agreed
with PwC and the council.

As agreed in
the survey agreement with the participating councils, each participating
council is permitted to share the report with third parties as part of a
council meeting, on a council website, or with other Participating Councils
provided it is shared in its entirety and the following words are included with
the report when the report is provided:

“The information and/or metrics
referred to are extracted from the Australasian Local Government Performance
Excellence Program survey (survey) conducted by PricewaterhouseCoopers and
commissioned by LG Professionals, NSW. The survey was not conducted for
the specific purposes of the council and was limited to only the councils who
participated in it and based on the data they provided. The reliability,
accuracy or completeness of this information has not been verified by PwC, LG
Professionals, NSW or any other person.

Accordingly, no one should act on
the basis of this information and neither LG Professionals, NSW nor PwC accepts
any responsibility for the consequences of any person’s use ofor
reliance on this information or any reference to it.”

Implementation Date / Priority:

The report
is for noting only. However, the results of the program will be used to
inform areas of focus for Council’s workforce planning and continuous
improvement initiatives moving forward.

Conclusion:

This report
presents to Council the 2017-18 Performance Excellence Report for Coffs Harbour
City Council for consideration and noting.

An application has been received
by Council to amend Coffs Harbour Local Environmental Plan (LEP) 2013 to
enable low density residential development and tourist and visitor
accommodation (a motel) on 7 Tasman Street, Corindi Beach (Lot 111 DP 730304).

The subject land is one of the
last remaining significant greenfield sites in the coastal village of Corindi
Beach. The land is included in the growth area footprint of Council’s Local
Growth Management Strategy (Urban Lands Component 2008) and North Coast
Regional Plan 2036.

The purpose of this report is to
seek Council’s endorsement to initiate a Planning Proposal (Attachment 1)
to amend Coffs Harbour LEP 2013 to rezone the subject land from Zone RU2
Rural Landscape to Zone R1 General Residential and R2 Low Density Residential.

This report also seeks
Council’s endorsement to amend Coffs Harbour Development Control Plan
(DCP) 2015 (Attachment 2) to align with the proposed land use zones.

2. Request
that the Secretary of NSW Planning and Environment issue a written
authorisation to Council to exercise delegation of the plan making functions
under section 3.36(2) of the Environmental Planning and Assessment Act in respect
of the Planning Proposal.

3. Resolve
to publicly exhibit the Planning Proposal and undertake government agency
consultation based on the Gateway Determination issued by NSW Planning and
Environment.

5. Note
that a further report will be brought back to Council for consideration
following public exhibition of the Planning Proposal and DraftCoffs
Harbour Development Control Plan 2015 - Amendment No. 12.

Report

Description of Item:

An application to amend Coffs
Harbour LEP 2013 has been received by Council to enable low density
residential development and tourist and visitor accommodation (a motel) on 7
Tasman Street, Corindi Beach (Lot 111 DP 730304). The proposed land uses
are currently prohibited within Zone RU2 Rural Landscape under Coffs Harbour
LEP 2013.

The application has been subject to a peer review by
Council’s Local Planning Section and has been determined to have merit as
it accords with Council’s adopted and endorsed Local Growth Management Strategy.
In this regard, a Planning Proposal has been prepared in accordance with
Section 3.33 of the Environmental Planning and Assessment Act 1979
(‘The Act’) to initiate an amendment to Coffs Harbour LEP 2013
and is provided as Attachment 1 to this report.

The subject
land is located on the south-western interface of
Corindi Beach. The 4.3ha site slopes
gently from the north to the south and is currently
occupied by the Amble Inn (tavern) at the northern extremity of the site, while
the remainder of the land is vacant. A dwelling (1 Coral Street) is located
adjacent to the north of the land, while a large low density residential
development is located further to the north and immediately to the east of the
subject land.

An area of undeveloped land within Zone B1 Neighbourhood
Centre under Coffs Harbour LEP 2013 is also located immediately to the
east. The old Pacific Highway is located to the west of the subject land, with
the realigned Pacific Highway further to the west. Environmentally constrained
land, including wetlands are located to the south and south-east of the subject
land.

The subject land
is included within the Coffs Harbour Local Growth Management Strategy (Urban
Lands Component 2008) as an “investigation area for a future
motel” and was endorsed by the then NSW Planning on 18 November 2009. It
is also identified within the North Coast Regional Plan 2036 as an
“Investigation Area – Urban Land”.

· Existing
/ Proposed Zoning of the Subject Land

The subject
land is within Zone RU2 Rural Landscape under Coffs Harbour LEP 2013. An
existing non-conforming use (Tavern) is located on the northern part of the
subject land. Whilst this land use was permissible when it was developed on the
land under a previous planning instrument, the land use is now defined as a
‘Pub’ under Coffs Harbour LEP 2013 which is prohibited
within Zone RU2 Rural Landscape.

The proposal
to rezone the land will facilitate the ongoing operation of the Tavern and
allow ancillary development of motel accommodation and other uses commonly
associated with a Pub. The application of Zone R1 General Residential under Coffs
Harbour LEP 2013 is considered appropriate for the northern part of the
subject land as it permits a number of compatible land uses, including a motel.
The remainder of the subject land is vacant surplus land that is proposed for
low density residential development.

Accordingly,
the planning proposal seeks to rezone the subject land to Zone R1 General
Residential and Zone R2 Low Density Residential under Coffs Harbour LEP 2013.

A two
lot subdivision of the land was approved by Council in March 2013 (0825/12DA).
The resulting subdivision lot configuration corresponds with the proposed land
use zones within the Planning Proposal.

Existing and proposed zones are
shown in Figure 2.

Figure 2 – Existing and Proposed Land Use Zones

Issues:

· Local
Growth Management Strategy

The proposed amendment to Coffs
Harbour LEP 2013 is consistent with the Coffs Harbour Local Growth
Management Strategy (Urban Lands Component 2008), which was endorsed by the
then NSW Planning on 18 November 2009.

The proposed rezoning will assist to strengthen the sense of
place; deliver housing diversity and choice; provide walkable neighbourhoods;
and support economic and social functions of local centres.

Further, the subject land can be efficiently serviced and
has access to established centres through its proximity to the village of
Corindi Beach and the Pacific Highway. Potential future amenity impacts between
the pub/motel and the proposed low density residential development to the south
(and east) have been discussed in the Planning Proposal (Attachment 1).

· Motel
Development

The subject
land contains a Tavern which was approved by the former Ulmarra Shire Council
in 1986. At the time, overnight accommodation was also included in the
approved plans, which showed six motel units as a second stage.

Since the adoption of the Coffs
Harbour Local Growth Management Strategy (Urban Lands Component) in 2008
and its endorsement by the then NSW Planning in 2009, the Woolgoolga to Wells
Crossing Pacific Highway deviation project has been completed and the capacity
of services infrastructure within the area has significantly improved.

The subject land received an approval
for a two lot subdivision in 2013, however no formal process has been initiated
in relation to a motel development. From a locational perspective, the
land is seen as a suitable location for a motel development for the following
reasons:

- suitable
road network access;

- availability
of utility services;

- allotment
size;

- absence
of environmental hazards and constraints;

- proximity
to existing residential and business land; and

- proximity to the
coastline and beach.

Options:

Council
has two options in relation to this matter as follows:

1. Resolve to adopt the
recommendations of this report and initiate the Planning Proposal.

2. Resolve not to adopt the
recommendations of this report and not to initiate the Planning Proposal.

Comment: This option does not achieve the
objectives of Council’s Local Growth Management Strategy.

It is recommended that Council pursue Option 1.

Sustainability Assessment:

• Environment

Environmental sustainability
issues are summarised in the Planning Proposal provided as Attachment 1 to this
report. Environmental sustainability issues are also required to be addressed
as part of any future development application should the planning proposal be
initiated.

• Social

Social sustainability issues are
summarised in the Planning Proposal provided as Attachment 1 to this report.
The proposed land use zones would make a positive contribution to the growth of
Corindi Beach. The new land use zones would provide additional land for
residential, and tourist and visitor accommodation uses, while also recognising
the existing Tavern on the site and supporting its ongoing operation and
enhancement.

The additional residential lots
will add to housing choice and increased land stock in the locality. The
proposal is not considered to place unreasonable demands on existing social
services in the Corindi Beach village or the immediate area.

• Civic
Leadership

The Planning Proposal accords
with relevant objectives and associated strategies of the MyCoffs (Community
Strategic) Plan.

• Economic
– Broader Economic Implications

In terms of capital investment,
additional land for residential, and tourist and visitor accommodation uses has
the potential to generate additional income and employment for the local
economy.

• Economic
- Delivery Program/Operational Plan Implications

The proposed amendment to Coffs
Harbour LEP 2013 is a proponent led project, therefore Council’s
adopted fees and charges apply. In this regard there are no implications for
Council’s Delivery Program or Operational Plan as this process is funded
by the applicant.

Risk Analysis:

The Planning Proposal
provided as Attachment 1 to this report addresses the constraints that affect
the land, sufficient to allow Council to support the application and initiate
the Planning Proposal to the Gateway Determination stage. The Planning
Proposal demonstrates that the constraints affecting the land can be managed
effectively, therefore minimising associated risks.

Consultation:

Should Council resolve to initiate the Planning Proposal and
a Gateway Determination is subsequently issued by NSW Planning and Environment,
the proposal is required to be exhibited in accordance with the Gateway
Determination and relevant provisions of The Act. Consultation with Government
agencies and other stakeholders may also be required if specified within the
Gateway Determination.

Related Policy, Precedents
and / or Statutory Requirements:

The following policies and
statutory documents are relevant to this report and have been considered in the
preparation of the Planning Proposal:

- Environmental
Planning and Assessment Act 1979 and Regulations;

- State
Environmental Planning Policies (SEPPs);

- Section 9.1
Ministerial Directions;

- North Coast
Regional Plan 2036;

- My Coffs
Community Strategic Plan;

- Coffs Harbour
Local Growth Management Strategy;

- Coffs Harbour
Local Environmental Plan 2013; and

- Coffs Harbour
Development Control Plan 2015.

Implementation Date /
Priority:

Should Council resolve to initiate the Planning Proposal, it
will be immediately forwarded to NSW Planning and Environment, requesting a
Gateway Determination. The timeframe for the completion of this Planning
Proposal is governed by the Act and thus is determined by NSW Planning and
Environment.

Conclusion:

The purpose of this report is to
seek Council’s endorsement to initiate a Planning Proposal to amend Coffs
Harbour LEP 2013 to rezone 7 Tasman Street, Corindi Beach from Zone RU2
Rural Landscape to Zone R1 General Residential and R2 Low Density Residential.

The proposed LEP amendment
accords with the North Coast Regional Plan 2036 and Council’s
adopted and endorsed Local Growth Management Strategy. The proposal would make
a positive contribution to the growth of Corindi Beach and provide additional
land for residential, and tourist and visitor accommodation uses, whilst also
recognising the existing Tavern on the subject land and supporting its ongoing
operation and enhancement.

At its meeting of 22 August 2013, Council adopted the
‘Development Applications - Consideration by Council Policy’, which
outlined:

That development applications for approval involving
substantial aspects of the following elements be referred to Council for
determination:

a) Significant
public interest and community input;

b) A
proposed variation to the Local Environmental Plan that varies from the
development standard by more than 10%;

c) Significant
land use; and

d) Major
environmental issues.

The proposal involves the demolition of a building, referred
to in this Report as Building 5, that has known heritage values. The proposed
demolition of this building may result in major environmental and social
impacts. Accordingly, this matter is reported to Council for determination in
accordance with part d) of the Council resolution.

It is recommended that the application be determined in
accordance with section 4.16 (4)(b) of the Environmental Planning &
Assessment Act 1979 by way of a ‘partial consent’. It is
recommended that the development be approved, with the exception of the
demolition of the building referred to in the submitted application and as
shown on the ‘Demolition Plan’, prepared by Bennell &
Associates, as Building 5 (the former Forestry Commission headquarters
building).

2. Advise
persons who made a submission on Development Application No. 0472/18 of
Council’s decision.

Report

Description of Item:

· The Site

The site is Lots 5, 6, 7, 8, 9
and 10, Sec 67 DP 758258, 357 Harbour Drive, Coffs Harbour. The property,
as shown below, is bounded by Harbour Drive to the south, Hood Street to the
west and Gilbey Lane to the north. The combined area of the lots is
approximately 3,179.04m2. The site is regular in shape.

The site currently accommodates
existing commercial development, being five buildings. These buildings are
referred to in the submitted application and this report as buildings 1 –
5. Four of these buildings are single-storey structures, with the remaining
building being a three-storey structure. Until recently the site accommodated
the NSW Forestry Commission, with Building 5 utilised as their headquarters.

The site is zoned B4 Mixed Use
under the Coffs Harbour Local Environmental Plan 2013.

· The
Development

The
proposed development involves the demolition of the five buildings described
above, leaving a vacant site.

Issues:

Heritage Listing Considerations

Until recently the buildings accommodated the NSW Forestry
Commission, with Building 5, the “former’ Forestry administration
building, being used for their headquarters. Building 5 was identified in the
2015 community based Coffs Harbour Heritage Study (the Study) as an item of
local significance. The Study recommended that the item be listed in Schedule 5
of the Coffs Harbour Local Environmental Plan (LEP) 2013 as local heritage
item, with further analysis to be undertaken with the view of potentially
nominating the building for State Heritage Listing. At its meeting of 14
April 2016 Council resolved to adopt Parts 1 and 2 of the revised final version
of this Study and note the findings of Parts 3 – 5.

At its meeting of 12 April 2018, Council considered a report
on a number of potential heritage items of local and state significance.
At this meeting, Council resolved not to proceed with the inclusion of several
items recommended for heritage significance in the Coffs Harbour Local
Environmental Plan, one of which was the Building 5 “former’
Forestry administration building, 357 Harbour Drive, Coffs Harbour:

While noting the decision not to proceed with any further
heritage listing of the former Forestry building, Council is obligated to
assess the heritage impacts as part of the Section 4.15C Evaluation.

Development Assessment Considerations

The following key issues have been identified during the
assessment process:

- heritage
values of Building 5; and

- expected
unacceptable environmental and social impacts, resulting from the proposed
demolition of Building 5.

These assessment matters are discussed in detail in the
attached Section 4.15C Evaluation.

2. Reject
the recommendation and grant ‘full consent’ to the application,
subject to conditions.

3. Reject
the recommendation and list reasons for refusal to the application.

It is recommended that Council pursue option one, as
outlined above.

Sustainability Assessment:

• Environment

The development, as proposed
involving the demolition of Building 5, is expected to result in unacceptable
environmental impacts. A complete assessment of potential environmental impacts
is provided in the Section 4.15C Evaluation Report as Attachment 1 to this
report.

• Social

The development, as proposed
involving the demolition of Building 5, is expected to result in unacceptable
social impacts. A complete assessment of potential social impacts is provided
in the Section 4.15C Evaluation Report as Attachment 1 to this report.

• Civic
Leadership

MyCoffs Community Strategic
Plan:

The proposed demolition,
involving Building 5, is considered to be inconsistent with the ‘MyCoffs
Community Strategic Plan’. Specifically, the proposed demolition of
Building 5 is not consistent with the ‘A Place for Community’
theme, which requires amongst other things, that “local heritage is
protected and the stories behind it shared”.

• Economic
– Broader Economic Implications

The proposed demolition is not
expected to result in any significant broader economic implications.

• Economic
- Delivery Program/Operational Plan Implications

There are no implications for
Council’s Delivery Program/adopted Operational Plan.

Risk Analysis:

A risk analysis has been undertaken and it is considered
that approval of the development application as recommended, does not pose a
significant risk to Council.

Consultation:

The proposed development has been advertised and notified in
accordance with the requirements of the Coffs Harbour Development Control Plan
2015 for a period of 14 days and five (5) submissions were received.

A full copy of all of the submissions is a confidential
attachment to this report (Attachment 4) as the submissions may contain
personal or private information or other considerations against disclosure as
prescribed under the Government Information (Public Access) Act 2009.

The matters, which can be
considered in the assessment of a development application, are limited to those
specified in Section 4.15C of the Environmental Planning and Assessment 1979.

A Section 4.15C Evaluation is
provided as Attachment 1.

· Other
Relevant Statutory Instruments

Other statutory instruments
relevant to the assessment of the proposed development include the following:

- Environmental
Planning and Assessment Regulation 2000

- Coffs
Harbour Local Environmental Plan 2013

- State
Environmental Planning Policy No. 55 - Remediation of Land

- State
Environmental Planning Policy (Coastal Management) 2018

- Coffs
Harbour Development Control Plan 2015

Each of these statutory
instruments is considered in detail in the Section 4.15C Evaluation appended to
this report.

Implementation Date /
Priority:

In the event that Council adopts the recommendation, a
formal notice of determination will be issued for the development application
and persons who made a submission will be notified. A formal notice of
determination is valid for five years and the applicant can act on the
development consent at any time within that period, subject to complying with
relevant conditions of the consent.

Conclusion:

This report provides an assessment of the application that
has been undertaken in accordance with all statutory requirements and it is
recommended that the application be determined in accordance with section 4.16
(4)(b) of the Environmental Planning & Assessment Act 1979 by way of
a ‘partial consent’. It is recommended that the development be
approved, with the exception of the demolition of the building referred to in
the submitted application and as shown on the ‘Demolition Plan’,
prepared by Bennell & Associates as Building 5 (the former Forestry
Commission headquarters building).

1. This
development consent provides a ‘Partial Consent’ pursuant to
Section 4.16 (4)(b) of the Environmental Planning & Assessment Act 1979.
The building referred to in the submitted application and as shown on the
‘Demolition Plan’, prepared by Bennell & Associates as Building
5 (the former NSW Forestry Commission headquarters buildings) is not approved.

Development Description:

2. Development consent is granted only to
carrying out the development described in detail below:

3. The
proponent shall comply with the prescribed conditions of development approval
under Clauses 97A, 98, 98A - E of Environmental Planning and Assessment
Regulation 2000 as are of relevance to this development.

Development in Accordance with Plans:

4. The
development is to be implemented in accordance with the plans set out in the
following table except where modified by any conditions of this consent
(Development Consent No 0472/18).

Plan No.

Prepared by

Date stamped by Council

Demolition Plan

Bennell & Associates

14/02/2019

In the event of any inconsistency
between conditions of this development consent and the plans referred to above,
the conditions of this development consent prevail.

The
approved plans endorsed with the Council stamp and authorised signature must be
kept on site at all times while work is being undertaken.

PRIOR TO COMMENCEMENT OF DEMOLITION WORKS

Erosion and Sediment Control:

5. Prior
to commencement of work on the site for each stage of the development, erosion
and sedimentation control measures are to be installed and operational
including the provision of a “shake down” area where required to
the satisfaction of the Principal Certifying Authority.

Removal of Hazardous Materials:

6. All
hazardous materials shall be removed from the site and shall be disposed of at
an approved waste disposal facility in accordance with the requirements of the
relevant legislation, codes, standards and guidelines, prior to the
commencement of any building works. Details demonstrating compliance with
the relevant legislative requirements, particularly the method of containment
and control of emission of fibres to the air, are to be submitted to the
satisfaction of the Principal Certifying Authority prior to the removal of any
hazardous materials.

Asbestos removal

7. Work
involving bonded asbestos removal work
(of an area of more than 10 square metres) or friable asbestos removal work
must be undertaken by a person who carries on a business of such removal work
in accordance with a licence under Clause 458 of the Work
Health and Safety Regulation 2011,

The person having the benefit of the
development consent must provide the Principal Certifying Authority with a copy
of a signed contract with such a person before any development pursuant to the
development consent commences,

If the contract indicates that bonded asbestos material
or friable asbestos material
will be removed to a specified landfill site, the person having the benefit of
the development consent must give the Principal Certifying Authority a copy of
a receipt from the operator of the landfill site stating that all the asbestos
material referred to in the contract has been received by the operator.

Demolition Works:

8. All
works including (where relevant) the handling and disposal of materials
containing asbestos, are to be undertaken in accordance with the relevant
requirements of WorkCover NSW, the Work Health and Safety Act 2011 and
Australian Standard AS 2601-2001 “The Demolition of Structures”.

Prior to demolition all services are
to be disconnected and capped off. Coffs Harbour Water is to be notified
two working days prior to demolition of the intention to commence the
works. Disconnection of any sewer drainage lines shall be sealed to
prevent ingress of water and debris into the sewerage system.

Where water and sewerage services are
no longer required the required fee for disconnection being paid to Coffs
Harbour Water prior to the commencement of any demolition work.

Demolition Bond:

9. A damage deposit and administration fee as determined by
Council's Fees and Charges Schedule shall be lodged with Council as a bond to
cover possible damage to Council’s property that may result during the
removal of demolition material from the site. The deposit is to be lodged
with Council and arrangements made for a dilapidation survey to be undertaken
to assess the condition of Council property adjoining the land prior to the
commencement of demolition work.

DURING DEMOLITION WORKS

Approved Plans to be On-Site:

10. A copy of
the approved and certified plans, specifications and documents incorporating
the conditions of approval and certification shall be kept on the site at all
times and shall be readily available for perusal by any officer of Council or
the Principal Certifying Authority.

Waste and Contamination:

11. The exportation
of waste (including fill or soil) from the site must be in accordance with the
provisions of the Protection of the Environment Operations Act 1997 and the
Office of Environment and Heritage “Waste Classification
Guidelines”.

Any new information that comes to
light during remediation, demolition or construction works which has the
potential to alter previous conclusions about site contamination must be
immediately notified to the Council and the Principal Certifying Authority.

Dust Control Measures:

12. Adequate
measures shall be taken to prevent dust from affecting the amenity of the
neighbourhood during construction. In particular, the following measures
must be adopted:

(1) All
materials shall be stored or stockpiled at the best locations;

(2) The
surface should be dampened slightly to prevent dust from becoming airborne but
should not be wet to the extent that runoff occurs;

(3) All
vehicles carrying spoil or rubble to or from the site shall at all times be
covered to prevent the escape of dust or other materials;

(4) Cleaning
of footpaths and roadways shall be carried out regularly;

Under the Local Government Act, Council is required to
report six-monthly on its progress against the principal activities detailed in
the Delivery Program.

The Six-Monthly Progress Report (for the period 1 July to
31 December 2018) on the Coffs Harbour City Council 2017-2021 Delivery Program
(Year 2) is tabled at this time. The Six-Monthly Progress Report identifies
achievements and challenges recorded during the reporting period and provides
updates on Council services, projects and key operational activities.

There are 240 Operational Plan actions detailed in the
six-monthly report. The majority are recorded as being On Track; 30 are listed
as Needing Attention and one as Critical, generally reflecting the impacts of
external factors.

The report represents the considerable record of achievement
by Council and its workforce in delivering positive outcomes for the Coffs
Harbour community. The reporting period saw many highlights including:

- The
opening of the new; $450,000 Bardens Bridge at Crossmaglen;

- The
roll-out of the ‘Trading Places’ scheme to enhance footpath use in
business areas;

- Winning
the globally-acclaimed International Festivals and Events Association (IFEA)
World Festival and Event City Award for the fourth year in a row;

- Coffs
Harbour being named the Most Innovative Regional Council at the inaugural WAVE
awards for enterprise development;

- Steady
progress in the planning for a new Cultural and Civic Space in Coffs Harbour;

- The
launch of the “MyCoffs Connect” online directory and calendar of
events supporting community groups and service providers;

- Council’s
Jetty4Shores Project winning the NSW Minister for Local Government’s 2018
Award for Innovation in Local Government Engineering;

- Community
engagement to refine concept plans to revitalise City Square;

- Delivery
of land management, environmental and sustainability initiatives; and

- Delivery
of a range of community, economic and sporting programs.

Recommendation:

That Council:

1. Adopts
the attached Six-Monthly Progress Report (for the period 1 July to 31
December 2018) on the Coffs Harbour City Council 2017-2021 Delivery Program
(Year 2) for public release.

2. Amends
the 2018/19 Operational Plan in regard to the actions detailed in the Issues
section of this report.

Report

Description of Item:

Coffs Harbour City Council began implementing its 2017-2021
Delivery Program (Year 2) on 1 July 2018. The Delivery Program must include a
method of assessment to determine the effectiveness of Council’s
principal activities in achieving the objectives of the MyCoffs Community
Strategic Plan. Progress reports must be provided to Council at least every six
months. While it is a legislative requirement, the Six-Monthly Progress Report
also represents a valuable opportunity for the organisation to evaluate its
performance and account to the local community.

The Six-Monthly Progress Report (for the period 1 July to 31
December 2018) on the Coffs Harbour City Council 2017-2021 Delivery Program
(Year 2) is tabled at this time. Once adopted, the six-monthly Report will be
posted on Council’s website and printed copies will also be made
available at Council’s display locations.

Issues:

The Six-Monthly Progress Report is an overview of
Council’s activities that respond to the objectives and strategies of
Coffs Harbour’s MyCoffs Community Strategic Plan. It refers to the period
1 July to 31 December 2018.

In the 2017-2021 Delivery Program (Year 2), Council details
a range of actions (projects and ongoing tasks) that are aligned with one or
more of the Strategies that are set out in the Community Strategic Plan.

The updates include ‘traffic lights’ which
indicate whether an action is On Track (green light), Needs Attention (yellow
light), or Critical (red light). A grey traffic light indicates that an action
is On Hold - in these cases, the action may be yet to start, not active this
reporting cycle, or awaiting funding or the outcome of other processes
including the development of data systems.

During the period, progress reports were submitted for a
total of 240 actions implemented by Council. The updates indicate the majority
of actions are On Track. A total of 30 actions are recorded as Needing
Attention and one as Critical; these reflect resourcing/workload issues, delays
associated with the introduction of new systems or processes, and/or the impact
of external factors. Progress reports indicate how it is proposed to bring
these actions back On Track.

The report represents the considerable record of achievement
by Council and its workforce in delivering positive outcomes for the Coffs
Harbour community. The reporting period saw many highlights including:

- The opening
of the new; $450,000 Bardens Bridge at Crossmaglen;

- The
roll-out of the ‘Trading Places’ scheme to enhance footpath use in
business areas;

- Winning the
globally-acclaimed International Festivals and Events Association (IFEA) World
Festival and Event City Award for the fourth year in a row;

- Coffs
Harbour being named the Most Innovative Regional Council at the inaugural WAVE
awards for enterprise development;

- Steady
progress in the planning for a new Cultural and Civic Space in Coffs Harbour;

- The launch
of the “MyCoffs Connect” online directory supporting community
groups and service providers;

- Council’s
Jetty4Shores Project winning the NSW Minister for Local Government’s 2018
Award for Innovation in Local Government Engineering;

- Community
engagement to refine concept plans to revitalise City Square;

- Delivery of
land management, environmental and sustainability initiatives; and

- Delivery
of a range of community, economic and sporting programs.

Since the adoption of the
2018/19 Operational Plan by Council on 23 June 2018, certain issues have
required the adjustment of timeframes for the following actions. It is
recommended that Council endorse these adjustments:

Action

Adopted Completion Date

Revised Completion Date

Comment

P0515 Develop an Integrated Transport Plan for Coffs Harbour

25 Feb 2020

30 Jun 2020

Council is currently working with NSW Roads and Maritime
Services and Transport for NSW to resolve the scope of work for this project.
An initial workshop has been held with Council staff and government
stakeholders, which has identified the timing will need to extend by a
quarter.

P0499 Complete a CBD Loveable Laneways analysis

31 Dec 2018

30 Jun 2019

This project has been delayed because staff resources were
redirected to the redesign of City Square as a priority. That concept design
is now completed, and staff are now back working on the laneways project.

P0938 Undertake a 5 year review of Coffs Harbour LEP 2013

30 Jun 2019

30 Jun 2020

Deferred following a 12-month extension by Department of
Planning and Environment

To improve clarity in
reporting it is recommended that a number of adopted actions be amended as per
the following table:

Action

Adopted Completion Date

Revised Completion Date

Comment

P0841 S94 sport infrastructure
works

30 Jun 2019

n/a

Recommended for deletion. The measure encompasses multiple
projects which can be more effectively reported as individual actions. A
number of these projects are already included as separate actions in the
2018/19 Operational Plan (P1123 to P1131). For consistency, it is recommended
that the remaining four projects be represented the same way (see below).

The current action is identified as a Project, which is
time-based. As the implementation of the Workforce Management Plan is an
ongoing activity, it is considered more appropriate to report on it as a
program-based action (described in our reporting as a “Business as
Usual” action. See B1204.)

Separate Library, Gallery and Museum Strategic Plan
development projects were consolidated during 2017/18. Additional time has
been needed to pursue this as an integrated project. For reporting purposes,
it is recommended that a single project be included in the 2018/19
Operational Plan.

B1190 Implement the Library, Gallery and Museum Strategic
Plan

n/a

n/a

As a consequence of the above change, it is considered
appropriate that the subsequent implementation of the Strategic Plan be evaluated
in an integrated measure in the Operational Plan. This single measure would
replace the three individual implementation actions - for Library (B0900),
Gallery (B0901) and Museum (B0461) - adopted in the 2018/19 Operational Plan.

P0132 Complete the Lifeguard Service Strategic Plan

30 Jun 2018

30 Dec 2019

Project required additional (external) resourcing not
available in 2017/18, necessitating its carryover into 2018/19. Funding
allocation approved in 2018/19 budget.

Further analysis and Council report required as a result of
NOM18/23 Inclusive Access at Jetty Beach

P0513 Develop social inclusion policy statements

30 Jun 2018

30 Dec 2019

Deferred while resources were reallocated to higher priority
projects including coordinating the Stronger Country Communities Fund Grant
applications and Council’s participation in the Get Connected Toormina
project. Staffing changes and recruitment have impacted this
timeline. Demographic profiling for the LGA has been completed
and will contribute to the development of the policy during 2019.

P0555 Develop a Volunteer Management and Support Strategy

30 Jun 2018

30 Jun 2019

The development of the Strategy is well progressed with an
anticipated delivery in the first half of 2019.

Delayed to allow time for additional input from the
Agricultural Advisory Committee.

A Draft Rural Lands Chapter was presented to Council in
December and placed on public exhibition until end of February 2019. The
Discussion Paper on Intensive Plant Agriculture was deferred for public
exhibition until further consultation with the Agricultural Advisory
Committee before March 2019.

P0220 Finalise the Deferred Lands Planning Proposal

31 Dec 2017

28 Feb 2019

The Deferred Lands Planning Proposal has been partially
completed and made by NSW Minister for Planning, with the exception of the
Sandy Shores lands component. Council awaits the making of the remaining part
of the Plan by the Minister of Planning. All actions required by Coffs
Harbour City Council are fully completed.

P0588 Finalise the Botanic Garden Strategic Plan

30 Jun 2018

30 Apr 2019

The Draft Strategic Plan was reported to Council and placed
on public exhibition in December quarter 2018. A further report to Council
will be tabled in first quarter 2019 to finalise the project.

P0667 Bus Stop Upgrades - Stage 1

30 Jun 2018

30 Jun 2019

10 of the 12 bus stops as part of stage 1 have been upgraded
(associated with initial grant funding). Further works are currently being
scoped to initially resolve bus stops on autonomous route followed by Bray
Street and the rest of the bus stop network as funding allows.

Harbour Dr in progress to be completed in February;

Bray St / Mackays Rd CPTIGS - by June quarter;
Donn-Patterson Dr, Francis St and Bailey Ave have been identified and will be
due in June quarter.

P0693 CBD Masterplan Works - Moonee Street Entry Statement

30 Jun 2018

31 Dec 2019

The Project is identified in the CBD Masterplan works but
has not started Concept Plans are shown in the Masterplan; architectural
plans and landscape plans are required prior to any construction works. Consultant’s
brief is being finalised.

P0694 West Coffs District Park, William Sharp Drive

30 Jun 2018

31 Jul 2019

Community consultation completed - no issues raised. Start
Procurement March quarter 2018/19 to Construction June quarter 2018/19 and be
completed by end of June quarter 2018/19.

P0840 Toormina Oval - new amenity
block

30 Jun 2018

28 Jun 2019

Change room and public toilet plans
are finalised.

Plans and costings for external site
works are underway. This project cannot progress any further until extra
funding is secured to fund the identified shortfall (approx $250,000). A
recent Clubgrants funding application was unsuccessful. Searches to identify
alternate funding sources (internal and external) to complete the project are
being undertaken.

Where these Operational Plan actions
appear in the Delivery Program as Focus activities, the Delivery Program
entries have been amended to reflect the changes in the Operational Plan.

Options:

As this report is to enable compliance with a legislative requirement
and the public release of an information resource for Council and the
community, an options analysis is not required.

Sustainability Assessment:

• Environment

Apart from printing and energy costs
associated with compiling the report, there are no environmental impacts
flowing from the preparation of the Six-Monthly Progress Report (for the period
1 July to 31 December 2018) on the Coffs Harbour City Council 2017-2021
Delivery Program (Year 2). However, the report considers Council’s progress
and performance in regard to the delivery of environmental strategies for the
Coffs Harbour local government area.

• Social

Similarly, the report considers
Council’s progress and performance in regard to the delivery of social
strategies for the Coffs Harbour local government area. The preparation and
publication of the report is consistent with Council’s commitment to
accountability to the community.

• Civic
Leadership

The Integrated Planning and
Reporting Framework enables Council to identify and respond to community
aspirations and co-ordinate the provision of appropriate works and services to
help achieve the objectives of the MyCoffs Community Strategic Plan (CSP). This
is consistent with the CSP strategy D.2 We have effective use of public
resources.

• Economic
– Broader Economic Implications

The report considers Council’s
progress and performance in regard to the delivery of strategies aimed at
stimulating the economic sustainability of the Coffs Harbour local government
area.

• Economic
- Delivery Program/Operational Plan Implications

The annual development and review of
the Delivery Program and Operational Plan are accommodated within
Council’s budget structure. This expenditure is monitored through
Council’s monthly and quarterly budget reviews.

Risk Analysis:

The
preparation of a Six-Monthly Progress Report is a legislative requirement. A
risk analysis is not applicable in this instance.

Consultation:

The
preparation of this report involved engagement with Executive Leadership, Group
Leaders and staff responsible for reportable actions across Council.

Related Policy, Precedents
and / or Statutory Requirements:

Section 404 of the Local Government Act 1993 applies. In
summary, it requires that:

- A
council must have a Delivery Program, detailing the principal activities it
will undertake to achieve the objectives established in the Community Strategic
Plan, within the resources available under the Resourcing Strategy.

- The
Delivery Program must include a method of assessment to determine the
effectiveness of each principal activity detailed in the Delivery Program in
achieving the objectives at which the activity is directed.

- The
General Manager must ensure that progress reports are provided to the council,
with respect to the principal activities detailed in the Delivery Program, at
least every 6 months.

Implementation Date /
Priority:

If adopted
by Council, the Six-Monthly Progress Report (for the period 1 July to 31
December 2018) on the Coffs Harbour City Council 2017-2021 Delivery Program
(Year 2) will be published as soon as it is practical to do so.

Conclusion:

The Six-Monthly Progress Report (for the period 1 July to 31
December 2018) on the Coffs Harbour City Council 2017-2021 Delivery Program
(Year 2) identifies specific achievements or challenges recorded during the
reporting period and provides updates on Council Services, projects and key
operational activities.

While it satisfies a legislative requirement, the report is
a valuable resource to assist the community to understand what Council does and
how effective it is in helping to achieve the objectives of the MyCoffs
Community Strategic Plan.

The New South Wales Treasurer,
Dominic Perrottet MP, Minister for Industrial Relations has written to
Council’s advising that the State Government has reduced the penalty
notice rates issued by State Government authorities by 25%. The
Government has now made further regulatory changes that enable Council’s
to determine penalty notice rates within the State Government framework.

At present, penalty notice rates
are set by State Legislation at a $112 minimum, which until now, Councils have
not had the power to modify. Under the new framework, Councils will have the
ability to maintain the current rates set by and indexed annually by the
Government or consider and ‘opt in’ to apply a reduced rate for a
specified range of offences.

Recommendation:

That Council maintain the current arrangements for
regulated penalty notices.

Report

Description of Item:

The Government has made regulatory
changes that enable Council to maintain the current regulated penalty notices
or ‘opt in’ and utilise the regulatory framework to apply a lower
regulated amount.

The Government has advised the
following administrative provisions will apply:

As per clause 123B (2) of the Road Transport (General)
Amendment (Parking Fine Flexibility and Grace Period) Regulation 2018, Councils
must advise the Treasurer in writing if they wish to opt in to charge $80
instead of $112 for penalty notices issued by its enforcement officers in
relation to the relevant offences.

Those Councils who opt in will then be listed in
Schedule 5A as a Council which has opted in to the lower fines. If a Council
has not opted in, then they will not be listed in Schedule 5A and the higher
penalty of $112 will continue to apply.

Note that the current indexation arrangements for
parking fines will continue. Thus, as annual indexation occurs, the reduction
in parking fines will be from, for example, $114 to $82 in 2019-20 (compared
with $112 to $80 in 2018-19).

Specified opt in dates have been
set aside with the next opt in date set down for 1 April 2019 followed by July
1, 2019. If Council does opt in, it will also have the ability to opt out
at a later date if desired. Should Council resolve to opt in, there is a
lag time of 2 months before the lower amount would be applied.

Issues:

Penalty Infringements and Associated Considerations

A review of parking related penalties issued for the 2017 /
2018 financial year against the list of penalties for which the lower amounts
can be applied found that 1750 penalty infringements were issued for this
period.

The infringements issued during this period related to the
following 4 categories:

- Park
continuously for longer than permitted.

- Stand
vehicle in an area longer than allowed.

- Not
stand vehicle in marked parking space.

- Not
park wholly within parking bay.

Revenue from parking infringements is used to offset the
cost of monitoring and enforcement of parking restriction zones. By example,
the application of the lower penalty’s in the 2017/2018 financial year
would have equated to a reduction in revenue of $56,000. By comparison,
the difference in revenue ($56,000) is equivalent to the salary of a Parking
Officer. This revenue would need to be found elsewhere from
Council’s budget if a lower amount is applied.

Parking Monitoring and Enforcement

Parking offences are predominantly detected in association
with Council’s active monitoring and enforcement of parking restriction
zones within the various commercial and business areas of the local government
area. This council service is an important element used to support
commercial and business activities with parking turnover having a direct link
to maintaining the financial viability of these areas.

Parking enforcement leads to more effective use of existing
parking stock through ensuring turnover in accordance within time restricted
zones which may otherwise be used for all day parking. The effective use of
existing parking stock assists with reducing pressure on Council to provide
more parking. If spaces are not used effectively (eg someone parks in a 1
hour spot for the whole day), then this potentially displaces someone looking
for a short-term park to a further location or discourages them from parking at
all. This may result in growing complaints to Council about a ‘lack of
parking’ in location X, and consequent increase in pressure for Council
to provide more parking in location X.

Parking enforcement helps to ensure our main business /
commercial centres or ‘Places’ are not oversupplied with parking
(an ‘oversupply’ being generally described as when a patron can
drive to the main street, park directly outside or very close to their
destination, carry out their task and then drive and park very close to their
next destination). When patrons drive between destinations traders are denied
the chance to engage potential customers with interesting, enticing shopfronts,
and the main street / ‘Place’ inevitably loses much of its
vibrancy.

Having main streets / ‘Places’ with the correct
balance of parking (not over-supplied) helps provide a more vibrant, attractive
and commercially successful ‘Place’. Not having an oversupply of
parking frees up street space for wider footpaths or other uses, the Place
‘reads’ as a people-friendly place (as opposed to a place for cars)
where you want to walk and engage, spend, or mingle.

Penalty infringements are an important compliance tool
serving as a means to deter unwanted behaviours. Lower penalty provisions
may have a negative impact that could lead to an increase in parking
non-compliance.

Options:

1. Adopt
the recommendation as provided; Adopting this option will result in identified
penalties remaining unchanged from the existing level set by the State
Government.

2. Reject
the recommendation as provided. If Council resolves to ‘opt
in’ and apply a lower penalty this will result in the following actions:

- Documentation
will be sent to the Minister advising of Council’s decision;

- A
review of the financial considerations associated with an expected decrease in
penalty revenue will have budgetary impacts that will need to be reviewed and
addressed accordingly.

Sustainability Assessment:

• Environment

A reduction in the amount of the
penalty will not have any detrimental impact to the environment.

• Social

Whilst a reduction in the penalty
amount would financially benefit individuals it cannot be quantified at this
time as to whether this will have a positive or negative impact to compliance
behaviours. The State Government has generally utilised higher penalties as a
means to manage and achieve behavioural change.

• Civic
Leadership

Council has a
responsibility to consider the impacts of reducing the penalty from both an
individual perspective (who may benefit through incurring a lower penalty) and
the wider business, commercial and rate payers.

• Economic
– Broader Economic Implications

While it is not possible to
predict the broader economic impact of reducing parking fines if introduced,
one potential outcome may be increased non-compliance through parking overstay
and reduced availability of short term parking with potential impact to
businesses.

• Economic
- Delivery Program/Operational Plan Implications

It is estimated that a reduction
in the penalty from $112 to $80 will result in a potential reduction in the order
of $56,000 per year (based on 17/18 financial year fine history).

Penalty revenue is used to
off-set Council’s service costs associated with its parking monitoring
and compliance service which can be likened to user pay principles. A
reduction in revenue will have a broader impact upon Council’s budget
with the shortfall needing to be found elsewhere from the general budget or
potentially through provision of reduced service levels.

Risk Analysis:

If the current penalty amount is maintained unchanged then
Council may receive an adverse public reaction. Should Council resolve to
opt in and either shift the service cost burden to the wider rate payer or
reduce the service provision then this may attract an adverse reaction from
affected business/commercial interests and ratepayers.

Consultation:

This is a State Government
introduced regulatory initiative.

Related Policy, Precedents
and / or Statutory Requirements:

Parking penalties are regulated by State Government and
until now Councils have not had any ability to modify the amounts levied.
Even now, the ability to modify the amount of the penalty is limited and
controlled by the State Government.

Implementation Date /
Priority:

If Council
accepts the recommendation the current situation will remain unchanged.
If Council resolves to opt in to the application of a lower penalty amount,
then it is envisaged the change would commence on July 1 2019 in accordance
with the Governments implementation timetable.

The application of a reduced penalty infringement can be
reasonably expected to have the following impacts:

- Present
as a saving to individuals who commit a parking offence through obtaining a $32
reduction in the penalty based on the current regulated structure.

- May
result in increased parking non-compliance with individuals prepared to accept
increased risk on the basis of a lesser consequence.

- Will
have financial impacts upon the service provision requiring funding to be found
elsewhere from the general budget to maintain the same service or require
consideration to providing a lower level of service thereby impacting business
and commercial activities.

It is considered that the individual benefit received via
application of a reduction in penalty is outweighed by the negative impacts
upon the broader community. Accordingly, it is recommended that the penalty
remain at current Government regulated levels.

SI19/03 Relocation
of Lime System to Karangi Water Treatment Plant Contract RFT-1020-TO

Confidential in accordance
with Section 10A(2)(c),(d)(i),(d)(ii) of the Local Government Act as it
contains information that would, if disclosed, confer a commercial advantage on
a person with whom the Council is conducting (or proposes to conduct) business,
and commercial information of a confidential nature that would, if disclosed
prejudice the commercial position of the person who supplied it, and
information that would, if disclosed, confer a commercial advantage on a
competitor of the council.

Executive Summary

It is proposed to relocate the current Lime Dosing facility
at the Karangi Water Treatment Plant, due to operational, maintenance and
supply risks. This report facilitates the Contract to undertake the work.

Recommendation:

That Council consider tenders received for the
Relocation of Lime System at Karangi Water Treatment Plant - Contract
RFT-1020-TO and move the motion as detailed in the confidential attachment.

Report

Description of Item:

The relocation of the
Lime Plant was deferred when the Karangi Water Treatment Plant (WTP) was
constructed due to budget constraints and it is now found that the continued
operation of the old plant is causing major ongoing maintenance problems, where
fowling of pipes and valves is impacting operational requirements and
presenting supply risks.

As part of Coffs Harbour
City Council’s Water Strategy Study for the Karangi WTP, an options study
was undertaken to select the most viable option for future lime dosing, and the
relocation of the plant was recommended as per this tender

A pre tender site
inspection was held on the 22 November 2018.

Tenders were to be evaluated using the following criteria:

- Tender price

- Construction methodology &
detail and logic of Construction Program

- Experience and record of
performance in similar work

- OH&S Management System and
performance

Issues:

The current location of the Lime Plant, which is upstream
(prior to) to the inlet of the Karangi WTP, as resulted in high operational,
maintenance and breakdown costs. This is due to lime build up on the inlet
infrastructure including pipework, valves and flowmeters. This results in
continued downtime for the plant, as well as breakdown issues. Relocation of
the Lime Plant to within the water treatment process will eliminate these
issues.

To progress this project to completion additional budget
allocations are required in the current and 2019/20 financial years. This
requirement is detailed in the Economic - Delivery Program/Operational Plan
Implications section of this report.

Options:

1. Resolve
the recommendations in the Confidential attachment, which would allow the
relocation of the Lime System at the Karangi WTP, ensuring continuity of the
water treatment process.

2. Resolve
to not accept the tender and to not relocate the Lime Plant, which would put the
continued treatment of Coffs Harbour’s Water at risk

3. Resolve
to not accept the tender and call new tenders. This is not seen to provide an
advantageous result for Council as the limited and specialist market has
already been tested.

Sustainability Assessment:

• Environment

The proposed works will ensure
continued safe drinking water for Coffs Harbour

The proposed works will not
affect threatened species, populations or ecological communities as listed in
the TSC Act 1995.

The proposed works will have no
impact on matters of National Environmental Significance (NES) or other matters
as described in the Environmental Protection and Biodiversity Conservation Act
1999 (EPBC Act)

The proposed works will not have
any significant adverse impacts on the natural or human environment.

• Social

The construction of this new lime
plant will assist in ensuring the future water quality is maintained for the
residents of Coffs Harbour.

• Civic
Leadership

Council is required to provide
safe drinking water to its residents.

The project listed for
consideration will address matters outlined in the following strategy of the
Community Strategic Plan:

We have effective use of public
resources - (D.2)

The project will provide
significant reductions in maintenance costs of existing infrastructure and
ensure ongoing water quality within the reticulation system.

• Economic
– Broader Economic Implications

The Tender submission received
was from a company outside the Coffs Harbour City Council Local Government area
reflecting the specialist requirements of these works. The Tender received is
reflective of costs indicated by specialist design consultants, and is
considered value to Council.

• Economic
- Delivery Program/Operational Plan Implications

Funds for this work had been
allocated in previous financial years, but work had not been undertaken due to
operational issues and the need for further options to be investigated. These
funds were returned to the Water Fund reserves. The options report has
indicated the best solution is the relocation of the Lime plant, with the cost
as indicated by the tender.

Works will be partially funded
by the remaining $240,000 of the 2018/19 Budget allocation. It is proposed that
Council allocate a further $200,000 in the current Financial Year to allow
continuity of the project delivery, and then a further $660,000 in the 2019/20
Budget to allow completion of the Project. Funds would be sourced from
unexpended Water Loans, and the quantum would allow for a small contingency for
variations.

Relocation of the Lime Plant
will eliminate current significant operational, maintenance and breakdown
costs, as well as ensure continuity of water supply quality.

Risk Analysis:

As stated previously, the relocation of the Lime plant will
significantly reduce the risk of plant downtime and breakdown. This will
minimise the risk of interruption to safe drinking water supply.

Quality and safety risks will be controlled during
construction by Council’s Project Management team supervising and
administering the contract. Risks to the treated water quality will be managed
during construction by constructing a temporary dosing system prior to the
decommissioning of the existing Lime Plant.

Consultation:

Appropriate internal consultation has been undertaken to
ensure the initiation of this project, and will continue during the delivery
phase.

Consultation with, and reports from industry experts have
led to the creation of this project.

Related Policy, Precedents
and / or Statutory Requirements:

The calling, receiving and reviewing of tenders was carried
out in accordance with Part 7 Tendering of the Local Government (General)
Regulations 2005.

Tendering procedures were carried out in accordance with
Council's policy. This tender is tabled for Council’s consideration
and decision, in accordance with Council’s adopted Tender Acceptance
Policy, due to the requirement for additional budget funds to be allocated.

Implementation Date /
Priority:

Should
Council resolve the recommendations in the Confidential Attachment, the work on
detail design and fabrication could commence as early as April 2019, with the
expected completion date of November 2019.

Conclusion:

In order to
ensure a reliable and safe drinking water supply to the resident of Coffs
Harbour, it is proposed to relocate the Lime Dosing Plant at the Karangi WTP,
to reduce operational, maintenance and supply risks.

Council’s adopted cashflow budget for the expenditure
of CBD Special Rate monies requires adjustment to reflect the significant
expenditure will now take place during March, April and May of the current
year. Council has recently undertaken procurement actions for the City Square
Upgrade Project, including the early procurement of lead-time items such as
pavers and furniture. The tendering for a lead contractor has been completed
and tenders are currently undergoing assessment with a view to selecting the
best value offer in the very near term. In order to now undertake the work, the
City Centre Masterplan budget will need to be readjusted to reflect the actual
cashflows which will now occur in the current financial year. This report seeks
to provide an update of the project status and request Council’s
endorsement for this cashflow adjustment.

Recommendation:

That Council note the
report and adopt the following CBD Special Rate Capital Budget for the
2018/19 financial year and note the remaining years will be included in
future budgets for consideration by Council.

Capital Project

2018/19

2019/20

2020/21

2021/22

2022/23

City
Square Upgrade

$2,745,038

$198,185

City
Centre Signage

$100,000

Street
Furniture

$50,000

Park
Avenue Artist Lane

$96,000

Shade
Sails

$268,351

Moonee
Street Entry Statement

$30,000

Sunday
Activation (Capital)

$37,281

Christmas
Activation (Capital)

$14,235

Park
Avenue Upgrade

$400,000

Contingency

$260,112

$10,000

$50,000

$10,000

$10,000

Totals

$3,355,017

$208,185

$150,000

$156,000

$410,000

5
Year Total

$4,279,202

Increase
Funded From Reserve

$1,621,000

Financing:

Internal
Loan Drawdown

$1,516,124

Internal
Loan Repayments

$351,759

$369,347

$387,814

$407,204

Loan
Interest

$75,806

$58,218

$39,751

$20,360

Report

Description of Item:

At its meeting of 7 December
2017, Council resolved:

That Council:

1. Decline
to accept any tender received for Contract No. RFT-886-TO City Square
Refurbishment Construction; in accordance with s178(1) (b) of the Local
Government Regulations.

2. In
accordance with s178(3)(a), postpone the proposal for the Contract until
further reviews are Completed.

4. Continue with the supply and erection of the
screen on the carpark ensuring that the colour scheme is consistent with the
adopted CBD Master Plan palate.

At its meeting of 8 November 2018, Council resolved:

That Council:

1. Note
and endorse the redesigned concept for the upgrade of City Square.

2. Authorise
the commencement of procurement activities related to the project.

3. Acknowledge
that the current lease for the Caffeine Central kiosk automatically terminates
on 9 August 2019 and authorise the commencement and conduct of exit
negotiations with the lessees of the kiosk with a view to achieving the removal
of the kiosk prior to February 2019.

4. Consider any potential structure in the future that
will enhance the square at the southern end of city square and still
maintaining sight lines.

Council has recently installed the Park Avenue car park
screen. Successful negotiations have been undertaken with the lessees of the
Caffeine Central kiosk, and they have exited the lease.

Council has sought tenders for construction of the endorsed
redesign of the City Centre. Tenders have been received and are currently under
review. At the time of writing this report, the preferred tender had not been
fully assessed, and it is proposed that the Tender be accepted by the General
Manager under delegated authority, once budgetary issues discussed in this
report are resolved.

The current tender and those of December 2017 excluded items
issued free by Council, such as bespoke furniture and lighting. However, these
costs need to be included in the overall cost of the project. Tenders for the
new design are in the magnitude of $1,000,000 lower than the lowest tender
assessed in December 2017. This is due in part to the ‘lower key’
endorsed redesign that does not include multiple large steel and glass
structures.

This report requests Council to endorse the City Centre
Masterplan budget reallocation, to ensure that the project is delivered in a
timely fashion

Issues:

Tenders for the redesigned City Centre Upgrade are
significantly less expensive than tenders received for the previous design.
Additional costs of ‘free issue’ items need to be added to both
sets of tenders to establish the final overall cost.

The current arrangement of the 2018/19 City Centre
Masterplan budget does not cater for the full costs of the project. In order
for the project to proceed, scheduling adjustments of the available funds will
need to be undertaken.

Options:

1. Adopt
the recommendation and allow the construction to the City Square Upgrade to be
commenced in March 2019.

2. Reject
the recommendation and require review of the scope to further reduce costs.

Sustainability Assessment:

• Environment

A Part V environmental assessment
for the works will be prepared but no significant impacts are expected to
arise.

• Social

The objectives of the City Centre
Masterplan with regards to the City Square are to provide a place for Community
activity and to compliment and support the adjoining commercial activity. The
project will provide a place for social interaction and activities such as
extended alfresco dining, markets, festivals, movie nights, meeting places, and
‘pop up’ events and changing public art works.

• Civic
Leadership

Coffs Harbour City Council
through its MyCoffs Community Strategic Plan has identified the following Key
Vision Outcome:

We will have a vibrant and
inclusive place.

This project forms part of the
revitalisation of the City Centre as envisaged in the adopted City Centre
Master Plan.

• Economic
– Broader Economic Implications

As per the Key Vision above this
project is expected to attract more people to the City Centre resulting in the
creation of increased retail options and economic growth outcomes.

Consultation with adjoining
businesses and the City Centre Committee occurred during the design process.
The terms of the contract will require the contractor to maintain access for
businesses and the public during the construction phase.

• Economic
- Delivery Program/Operational Plan Implications

When the CBD Special Rate (SR)
was applied for, there was the intention for an internal borrowing from the
Employee Leave Entitlement Reserve of $4,000,000 in year one of the SR to
undertake works in year one and repay the loan over the 10 year SR. It was
budgeted to have interest repayments of in excess of $1.6 million over this
period. The major projects were not delivered in the first years of the SR,
this loan has not yet been activated, and interest payments have obviously not
been made. This has allowed the accumulation of funds to allow a smaller loan
to be necessary to undertake SR works.

Many of the City Centre projects
be been pooled into a single project within the proposed budget to allow for
the full upgrade of the City Square to be undertaken within the next 6 months.
Should the project be delivered for an amount less than is proposed within the
budget, the loan borrowing can be reduced and interest saved can be utilised
for other projects within the City Centre. This is demonstrated in the attached
tables.

The loan which is proposed
totalling $1,516,124 would be for a period of 4 years at an interest rate of 5%
p.a. and will see total interest payments of $194,136 over the 4 years. This
presents an overall saving of in excess $1.4 million over the loan contained in
the original SR budget.

This budget reallocation allows
for all the proposed projects to be completed, all be it at an altered schedule
from the original, but at a reduced cost than originally envisaged for the
overall program of City Centre works.

Current Budget

Capital Project

2018/19

2019/20

2020/21

2021/22

2022/23

City Square Upgrade -
awning, lighting & landscaping

$833,043

City Square
Amphitheatre

$153,286

City Centre Signage

$122,709

Light show, decorative
lighting, CCTV

$5,000

$9,195

Street Furniture

$98,990

Landscaping

$60,000

$40,000

Lighting

$100,000

$50,000

Park Avenue Artist Lane

$96,000

Shade Sails

$268,351

Moonee Street Entry
Statement

$30,000

Sunday Activation
(Capital)

$37,281

Christmas Activation
(Capital)

$14,235

Park Avenue Upgrade

$400,000

Contingency

$260,112

$10,000

$50,000

$10,000

$10,000

Totals

$2,380,017

$208,185

$50,000

$10,000

$10,000

5 Year Total

$2,658,202

Proposed Budget

Capital Project

2018/19

2019/20

2020/21

2021/22

2022/23

City Square Upgrade

$2,745,038

$198,185

City Centre Signage

$100,000

Street Furniture

$50,000

Park Avenue Artist Lane

$96,000

Shade Sails

$268,351

Moonee Street Entry
Statement

$30,000

Sunday Activation
(Capital)

$37,281

Christmas Activation
(Capital)

$14,235

Park Avenue Upgrade

$400,000

Contingency

$260,112

$10,000

$50,000

$10,000

$10,000

Totals

$3,355,017

$208,185

$150,000

$156,000

$410,000

5 Year Total

$4,279,202

Increase Funded From
Reserve

$1,621,000

Financing:

Internal Loan Drawdown

$1,516,124

Internal Loan
Repayments

$351,759

$369,347

$387,814

$407,204

Loan Interest

$75,806

$58,218

$39,751

$20,360

The increase capital expenditure of
$1,621,000, funded from City Centre Masterplan Reserve, is available due to the
interest savings of $1.6 million discussed above.

Risk Analysis:

It is believed that the high level of consultation that has
been undertaken has addressed the major risk of acceptance of the design.

Construction risks will be addressed as part of
Council’s normal project management process.

Consultation:

Extensive Community Consultation has been undertaken on this
project, as presented in the Council report of 8 November 2018.

Extensive and appropriate internal consultation has been
undertaken.

Related Policy, Precedents
and / or Statutory Requirements:

Tendering
procedures have been carried out in accordance with Council’s Policy and
the Local Government Act. Adjustment to the budget allocation and timing must
be undertaken by Resolution of Council.

Implementation Date /
Priority:

A preferred tender will have been identified by the time
this report is presented to Council.

If Council resolves the recommendations, works will be able
to commence in March 2019, with completion due in June 2018.

Long lead time items have been procured by Council and will
be ‘free issued’ to the successful Contractor, ensuring minimal
delays to the project.

Conclusion:

The City
Centre Upgrade construction is ready to start construction in March 2019, once
budgetary allocation matters are resolved.

The services delivered by Coffs Harbour City Council are
diverse and involve varying degrees of environmental, quality and safety
risk. These risks are mitigated through safety and management systems
which comply with relevant legislation and guidelines. With the diversity
in the services delivered by Council the scope and complexity of these
management systems is daunting. Over recent years compliance with the legislation
and guidelines that govern safety, environment and quality has become more
onerous and resource intensive.

To manage safety risk a Safety Management Plan (SMP) has
been adopted internally and implementation has commenced. It is proposed that
environmental and quality risk in the Council’s high risk areas will be
mitigated through the adoption and implementation of a system that is compliant
with International Standards Organisation (ISO). These systems
provide a standard framework that are industry best practice, addressing risks
within a systematic and accepted structure.

Further to ISO accredited environmental and quality systems
it has become a priority for the Construction Section of Coastal Works to gain
accreditation for its safety management under the Federal Safety
Commission. This scheme applies to projects that are directly funded by
the Australian Government to a value of $4 million or more. Established
in 2005, the Federal Safety Commissioner works with industry and government stakeholders
towards achieving compliance with occupational health and safety standards on
Australian building and construction projects. Council’s Coastal
Works will be relocating the water truck mains in preparation for the Coffs
Harbour Highway Bypass being funded by the RMS and will be required to have
systems compliant with FSC accreditation. These works will be carried out on a
commercial basis and return a dividend to Council. Without FSC and ISO
accreditation this commercial opportunity will not be available.

Accredited management systems in environmental, quality and
safety will assist the Council organisation in the implementation of the Safety
Management Plan and comprehensively manage risks in the high risk operational
areas of Council.

This report aims to address the methodology of how
accreditation can be achieved.

Recommendation:

That Council:

1. Endorse
the Safety and Systems Management Project for implementation.

2. Allocate
$418,000 from the Coastal Works Business Unit Reserve for the purpose of executing
the Project.

Report

Description of Item:

The Council organisation has considered formal accreditation
of its management systems governing the operational area on a number of
occasions. In 2011 prequalification for Councils environmental, safety and
quality systems was granted by the RMS for Road and Bridges Level 1 and
Financial $5 million. Since this time the prequalification has been
maintained with an upgrade on the Financials to $15 million. This
prequalification will allow Council to undertake works for the RMS on projects
where there is less than a $4 million contribution from the Federal Government.
With the advance in management systems the existing RMS prequalification which
is held by Council is no longer sufficient.

Many Local Governments now require suppliers working for
them to be ISO accredited as a minimum requirement, with a neighbouring Council
to Coffs Harbour already having ISO accredited systems. Accredited
systems will provide a platform for implementation of quality control systems
into the roads, open space, and the water and sewer maintenance sections.
This will ensure that not only capital works will be delivered under robust
management systems, but Council can also maintain and operate its assets with a
high degree of efficiency.

The aims of the System and Safety Management Project are:

For Council more broadly:

- To
accelerate the implementation of the Corporate Safety Management Plan

- To
assist in building build a ‘Safety First’ culture in the Coffs
Harbour City Council organisation

- Drive
improvements to quality and environmental outcomes across CHCC

- To
meet the stated objectives in Council’s Health Safety and Environment
Policy

- Enhance
Councils professional reputation, particularly in the safety field with very
few Councils having FSC accreditation

- To
plan for anticipated legislative changes which are forecast to focus on Local
Government safety, environment and quality practices.

For the Coastal Works Business Unit:

- To
achieve ISO and FSC accreditation for the Construction Section of Coastal Works
to be able to undertake the water service relocations for the Coffs Harbour
Highway By-Pass project

- To
implement best practice construction delivery through the use of the systems
consistent with the current industry standards

- To
mitigate construction risk through the implementation and consistent use of
best practice management systems.

It is proposed that the accreditation would be for Coffs
Harbour City Council t/a Coastal Works. At a later date the accredited
system can be rolled out, as needed, to other areas for Council once the system
has been proven on Coastal Works projects.

The benefits of Coastal Works-Construction running systems
that are accredited to FSC and ISO standards are:

- The
implementation of the corporate Safety Management Plan is fast tracked
resulting in improved safety risk for the organisation

- The
WHS culture in the organisation will improve as more effort is devoted to
safety systems and procedures

- Coastal
Works will qualify to undertake the water main relocations for the Coffs
Harbour highway bypass

- Council
will receive a significant commercial return on its investment as a result of
undertaking the water main relocations on the Highway Bypass project

- Coastal
Works will qualify to tender on future design and construct tenders

- Systems
will be in place to ensure that the Council infrastructure being built by the
Coastal Works construction teams is to specification

- The
management systems in the construction section will provide a platform for
implementation of quality control systems into the roads, open space, and the
water and sewer maintenance sections.

A concern is
that FSC accreditation may not be achieved in time for the Highway Bypass
project. Fortunately, the Federal Safety Commission allows organisations
to be granted ‘provisional accreditation’ subject to there being an
implementation plan in place. At a later date the FSC will undertake an
audit to assess the system’s compliance and grant accreditation
accordingly. It is planned that the corporate and construction safety
systems will be ready for provisional accreditation in August 2019.

Options:

At this
stage there are no other accreditation systems that carry the credibility of
the ISO standards and the FSC. To ‘do nothing’ will result in
Council losing a commercial opportunity that has the potential to bring
significant benefit to the Council and community.

Sustainability Assessment:

• Environment

An accredited environmental
management system will drive improvements to environmental outcomes across
Council. The system will facilitate compliance to environmental legislation,
REF conditions and approved permits issued by State and Federal Authorities.

• Social

Accreditation will lift the standard
of the systems which work crews operate under. Ultimately it will
increase their skills which will contribute to the skilled workers available in
the civil industry within the Coffs Harbour LGA.

• Civic
Leadership

This project will enhance Councils
professional reputation, particularly in the safety field with very few
Councils having FSC accreditation. Leadership in staff welfare and safety
demonstrates a mature organisation that values its staff and their contribution
to the organisation.

• Economic
– Broader Economic Implications

Accreditation of environmental,
quality and safety systems will enable Coastal Works to undertake the water
main relocations for the Coffs Harbour highway bypass and qualify to tender on
future design and construct works. Formal management systems will also
ensure that the Council infrastructure being built by the Coastal Works
construction teams is to specification and standard. These advantages
will deliver an economical benefit to the area with Coastal Works employing
local sub contractors, direct employees and returning a dividend to the
Council.

Alternatively, the work is
likely to be given to an organisation external of Coffs Harbour with the
employment, skills acquisition, and financial benefits flowing away from Coffs
Harbour.

• Economic
- Delivery Program/Operational Plan Implications

Funding is available within the Coastal
Works Business Reserve to undertake these works. The project requires
resources to undertake the following tasks:

- Train
staff in the sue and management of the safety, quality and environmental
systems

- Provide
ongoing support for the management of the accredited systems

Stage 1 Implementation
Costs

Item

Resource

Cost

1

External
WHS and QSE Consultant

$182,000

2

Internal
staff costs

$236,000

Total:

$418,000

It is envisaged that the
$418,000 will be repaid to the Coastal Works Business Unit Reserve from the
water main relocation works that will be undertaken for the Coffs Harbour
Highway Bypass. A preliminary estimate of these works is in the order of
$10 to $15 million.

Stage 2 Ongoing Management
Costs in Coastal Works

The operation and maintenance of
the system within Coastal Works will be managed by a full time a QSE
Coordinator. The funding for this position will be through commercial
activities and capitalised when working on Council renewal works and
construction programs.

Risk Analysis:

Risk

Impact

Likelihood

Mitigation Strategy

That accreditation is not achieved to the required
timeframe

High

Possible

Commence communication with the RMS to make
intentions regarding accreditation known

Project progress is delayed due to unavailability of
suitable resources

High

Likely

Develop a relationship early with a reliable systems
contractor to ensure resources are available when needed

Final audit fails due to major non conformance

High

Possible

Undertake a program of internal system audits prior
to final external audit

Consultation:

This
proposal has been subject to internal consultation and is supported by all
relevant internal stakeholders. This project will require considerable future
consultation with staff as new systems are developed and implemented. The
need for deep consultation with the community will be minimal as the focus is on
internal processes.

Related Policy, Precedents
and / or Statutory Requirements:

Accreditation is being sought under the following standards:

- ISO14001
Environment

- ISO
9001 Quality

- AS4801
Safety (Note: AS4801 is due to be phased out over a three year period, replaced
with the new ISO 45001 standard)

Regardless of the opportunity presented by the Highway
Bypass Project Council needs to update its existing environmental, quality and
safety systems. Fortunately, there is a project on our door step of the
size and scale necessary to be able to absorb the systems update and
accreditation costs. The value of the Coffs Harbour Bypass water main
relocation works is estimated to be between $10 and $15 million.

Council being the Water Authority for the Coffs Harbour LGA
will undertake the trunk main relocation works needed for the project to
proceed. The RMS has been informed of this through discussions and have
indicated that they are willing to proceed on this basis. Coastal Works
undertook all of the water and sewer main relocations for the Sapphire to
Woolgoolga highway upgrade and have established a good reputation with the
RMS.

By operating authorised systems Council will be able to
mitigate risk moving forward and assist the organisation to mature in its
safety, environment and quality applications. Councils professional
reputation, particularly in the safety field will be enhanced, with very few
Councils having FSC accreditation.

“Could
the Council please advise as to the steps that have been taken to gain the
necessary approvals to trim trees in the view lines of Coffs Harbour Marine
Rescue base, thus allowing for continued safety monitoring of the Harbour and
surrounds?”

Response

Council has
conducted appropriate physical site assessments which have identified that the
area in question is comprised of Brushbox Littoral Rainforest. The area is
thereby captured as a Threatened Ecological Community - Littoral Rainforest
under the Biodiversity Conservation Act (NSW) 2016.

Additionally,
the State Environmental Planning Policy (Coastal Management) mapping of the
same area highlights it as Coastal Littoral Rainforest which also invokes the
protections of the Biodiversity Conservation Act.

Council has
reasonable experience in seeking appropriate permissions to manage vegetation
under the Biodiversity Conservation Act. Most recently in relation to the
maintenance of the Airport Obstacle Limitation Surface. The timeframe to
achieve a result in that case was three years.

As a result
of the above assessments, Council is in the process of installing a high
definition panning/zooming camera above the Marine Rescue Base building and
will be connecting the Marine Rescue Base to two further CCTV cameras located
at the Boat Ramp. The three cameras will result in an improved Marine Rescue
surveillance capability which allows for continued monitoring of the Harbour
and surrounds.